Quote:
Originally Posted by fp115
They have $21b plus up to $5b in credit.
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He knows that.
You need to read closer. What he is saying is that of that $26 Billion total cash & credit, they may burn through all of that before getting to profitability yet in a near $200 Billion turnover company just keeping the lights on means fluctuations in outgoings can vary throughout the year to the tune of +/- $14 Billion, so before profitability there is the risk that large outgoings can drain cash before incomings replenish cash back to it's median range.
So he says they need about an $14 Billion (in addition to the $26 Billion cash reserves) in petty cash, not to burn through, but just to cover normal outgoings fluctuations.
