AT for now, the debt only costs the small interest payments. While the debt is outstanding, low interest costs allow the cash flows from the company to produce free cash flow. T then trumpets the FCF. But soon enough, the debt looms, and there may or may not be enough FCF to both pay off the debt, pay the dividend that T investors require, and have enough left over to keep the investment watchdogs, feeble and few though they are these days, satisfied.
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Most of the debt is long term and locked into a low rates. Any short term debt that matures will be refinanced. The biggest problem is issuing new debt for businesses that do not break even within 5 years. Cash flow management is one of the big reasons expenses are being cut. If you can't grow the top line based on what you purchase then the only alternative is to cut expenses. And that normally means people.
This company will be in life support, with all this debt as interest rise, the boneheads and the clueless makes a perfect company
AT for now, the debt only costs the small interest payments. While the debt is outstanding, low interest costs allow the cash flows from the company to produce free cash flow. T then trumpets the FCF. But soon enough, the debt looms, and there may or may not be enough FCF to both pay off the debt, pay the dividend that T investors require, and have enough left over to keep the investment watchdogs, feeble and few though they are these days, satisfied.