200,000 and you owe 400,000!!!!
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We need to get a new accounting dept maybe a little slick accounting can add a few billion in goodwill to the books and make everything much better
That happened to me ...got a OBAMA harp loan and poofff! The difference disapeared!!!
Looks like a CVS CFO is visiting the forum. :-) The only headwinds are coming from corp asswinds.
This is not a good analogy:
-Debt to Equity is not the same as Debt to Asset Value. CVS has around $196B in assets with debt around $71B (36%). Your example describes a debt to asset ratio of 200%. This is not at all close in scale.
-More importantly, a house is not the same as a business asset. Businesses take on debt to acquire revenue generating assets--most folks don't buy homes to generate revenue. Among businesses a Debt/Equity ratio of 1.26 is not extreme or uncommon. Here's a select list of popular large cap companies with ratios above CVS's (Diageo 1.28, 3M 1.49, Comcast 1.56, Bank of America 1.59, Anheuser Busch Inbev 1.70, Netflix 1.98, Verizon 2.13, Unilever 2.15, Pepsico 2.23, Oracle 2.37, IBM 2.73, UPS 7.53). There are many more.
I'm not saying that CVS's current Debt/Equity ratio shouldn't be a concern or that there aren't clear headwinds going against CVS, but it's clear that folks here are overstating the significance of the debt.
Yeah that was me in 2009 :(.