Yeah, think like equity analysts during upturns, and in a downturn think like credit, ie. map out the sources and uses of funds.
The big caveat here is rising rates on floating rate debt, and the marginal response of revenue to higher rates.
Re:Netflix lays off about 150 employees
by asdfman123 on Tuesday May 17, 2022 @09:55PM
(#31418430)
Can you explain that like you'd explain it to your elderly mother
Re:Netflix lays off about 150 employees
by JumpCrisscross on Wednesday May 18, 2022 @03:26AM
(#31420108)
> Can you explain that like you'd explain it to your elderly mother
Don't work for a tech company if you rely on wages for subsistence.
Re:Netflix lays off about 150 employees
by asdfman123 on Wednesday May 18, 2022 @02:16PM
(#31425910)
A little bit more detailed than that?
I used to work for the oil industry felt (and probably objectively is) far less stable.
Financial debt kills because free cash flow gets squeezed. For most tech companies, operating expenses constrain free cash flow.
Quick ratio [1] and free cash flow (or alternatively, operating cash flow) as a fraction of cash on hand (or less conservatively, current assets) would be my go-to acid tests.
[1] https://www.investopedia.com/terms/q/quickratio.asp