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QAN - Qantas Debt/Equity Ratio

Discussion in 'Shares' started by Shady, 23rd Feb, 2009.

  1. Shady

    Shady Well-Known Member

    Joined:
    13th Feb, 2009
    Posts:
    52
    Location:
    Sydney NSW
    Hoping someone might be able to 'Please Explain!'.

    Just looking around at the current crop of high yielding stocks and noticed QAN is at 13.9% (10.9% tax adjusted).

    I'm no analyst but looking at it's Debt/Equity ratio, it seems a tad on the high side, 72.7%.

    Comsec's definition of D/E ratio
    Ratio of interest-bearing debt to shareholders equity, as of the last annual report. Shareholders equity is based on the book value of equity, not the current market value of a companys stock.

    So QAN's low share price hasn't affected the ratio which is what I had originaly thought. Has QAN always had a high D/E ratio? I thought about the cost of the planes but I assumed they leased them and therefore possibly not appeared as debt.

    Any have any thoughts or suggestion?

    Cheers
     
  2. Shady

    Shady Well-Known Member

    Joined:
    13th Feb, 2009
    Posts:
    52
    Location:
    Sydney NSW
    Just comparing other airlines and its seem as though the 73% is reasonably low.

    Virgin Blue 160.6%

    British Airways 105% as at 31/3/08