Following on from this
"There is $11.12billion in debt for starters - greater than the current market capitalisation."
Whilst the management response is cut, cut, cut and the share price keeps diving, the debts remain constant..
At what point does the whole edifice collapse "enron style"
Stock price has nothing to do with Assets / Liabilities , what mor*n's that post on this site.
No.
Yes morally bankrupt at the moment, the rest no doubt to follow.
DXC has fallen (2019).
DXC is completely bankrupt....at least morally
Yep see some offshoot depts / functions being moved from DXC to CXD before being sold off and likely that will be more WFR and more WFR before the assets / portfolio of the company is broken up and sold off ( with minimal overheads - employees)
https://www.theregister.co.uk/2019/07/01/dxccxdinfrastructure_solutions/
Per analyst reports and Seeking Alpha transcripts, DXC is 40% leveraged. That is a very high number, but it doesnt mean assets < liabilities. So far the opposite is true. In fact, they took a loan of $2B to buy Luxoft. So debt is increasing for funding M&A activity. What that means is they are still solvent (debt is not being used for funding working capital).
But now here is the flip side: I dont think they can take any more debt without market impact to go buy another company to obfuscate their lack of financial performance. I believe we are coming or have come to a point where Mikey is naked and everyone can see what he has done. Unless he tries to get some fool to buy DXC, a critical part of his playbook of buying companies to reset financials is close to not being available.
This is serious bad news for people who stay behind. Cause guess what happens when Mikey cannot hide financials.......cuts, cuts, cuts....
@fgv The "No, DXC is not going bankrupt. It's assets are greater than it's liabilities by approximately $11bn." comment was mine.
I'm not an investor, I was just responding to the OP's question with a few facts. It will be interesting to see how the DXC story plays out.
The thread starter compared Liabilities and ASSETS (not market cap).
Current Assets = $32.58b
https://ycharts.com/companies/DXC/assets
Current Liabilities - $18bn
https://www.macrotrends.net/stocks/charts/DXC/dxc-technology/total-liabilities
You quoted:
Current Market Cap - $9bn
https://ycharts.com/companies/DXC/market_cap
"No, DXC is not going bankrupt. It's assets are greater than it's liabilities by approximately $11bn."
Hmm - are you an investor? ;)
Bear in mind, the share price has dropped to a 1/3 of its original value over the last few months.
I woudl say that the shareholders have already spoken and are taking a different view about how long this story continues.
What's going on now looks like shareholders "Cutting losses"
Current Liabilities - $18bn
https://www.macrotrends.net/stocks/charts/DXC/dxc-technology/total-liabilities
Current Market Cap - $9bn
https://ycharts.com/companies/DXC/market_cap
The Board of Directors of DXC must be mo–ns. How can a board continue to see this company get run into the ground. It's take a long time to start and run a successful company. Mikey is destroying it in a matter of months. Egads
No, DXC is not going bankrupt.
It's assets are greater than it's liabilities by approximately $11bn.
There will be no sudden collapse. The DXC story still has some time to run.
DXC is now constantly failing to win any bids and customer feedback is consistant - "No confidence in DXC's ability ro deliver"
DXC's management response of "cut cut cut" is like a pilot switching off aeroplane engines to save fuel.
"Hey Gliding is proving profitable".
Well it is until the aeroplane hits the ground......