CosmicSex said:
Its really considered healthy to have some debt. Have good debt as a consumer is better than not having any debt (for whatever reason but its true). I was actually shocked. I think they need to have more debt really. |
its actually not 'healthy' to have any debt at all
its a false concept in society that having some debt is good, and the only reason for that is that it gives creditors and banks something to look at in terms of your history and reliability. if you have debt and pay it off then people consider you trustworthy. nothing more
the concept that 'debt is good' makes zero sense
especially when we're talking a company of Nintendo's size- they don't need to prove their standing or reliabliity to institutions to borrow money so the only reason to have debt at any point is a moot point for them. if anything at the point of a billion dollar company the LACK of debt is something investors and prospectors are going to find appealing, a consistent company that generally goes up and not down
granted some investors will be interested in a company that frequently borrows money because volatile companies like that can be unpredictable and have big stock swings which obviously excite the gambling sort of investor
if the concept of having significant debt was good then Sony would not be under so much scrutiny and judgement over the last few years. its actually a scary place to be in because once you get a bit behind on it things can get out of control
