Hoping someone might be able to 'Please Explain!'. Just looking around at the current crop of high yielding stocks and noticed QAN is at 13.9% (10.9% tax adjusted). I'm no analyst but looking at it's Debt/Equity ratio, it seems a tad on the high side, 72.7%. Comsec's definition of D/E ratio Ratio of interest-bearing debt to shareholders equity, as of the last annual report. Shareholders equity is based on the book value of equity, not the current market value of a companys stock. So QAN's low share price hasn't affected the ratio which is what I had originaly thought. Has QAN always had a high D/E ratio? I thought about the cost of the planes but I assumed they leased them and therefore possibly not appeared as debt. Any have any thoughts or suggestion? Cheers
Just comparing other airlines and its seem as though the 73% is reasonably low. Virgin Blue 160.6% British Airways 105% as at 31/3/08
