Quote:
Originally Posted by aquaswim47
CHH has an interest-coverage of 9.6 (144,000,000/15,000,000). It's EBIT / Interest Expense. From (cash flow from opeating activities - capital expenditures) /interest expense, their ratio is 9.11 and their cash / interest expense is 2.4. To be fair, their current assets / interest expense is 5.81.
The company has about 6 months of an emergency fund in its holdings. That's not that solid. If they are unable to collect their debt obligations, they have about three months of an emergency fund. Moreover, they bring in operating income that is 9.6 times the amount of their interest expense. Great work.
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If this stock is at such a high risk of bankruptcy in your opinion
; why is it rated Investment grade at both S&P Ratings and Moody's. You can't tell me they have overlooked these things.