• masterspace@lemmy.ca
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    2 hours ago

    Talking total debt is somewhat meaningless.

    The important number is the ratio between their loss and their revenue.

    i.e. the convenience store down the street could operate at a loss before turning profitable, and accumulate far less than half the debt of iHeartRadio, but that doesn’t mean the convenience store is the better long term investment. When it turns a profit, it’s potential profit is far smaller than iHeartRadio’s was.

    • potustheplant@feddit.nl
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      2 hours ago

      Don’t know about iheartradio but OpenAI’s 3:1 ratio for 2026 does not bode well. That’s without considering therir future operational commitments, which are quite high.