> the company is now generating a profit excluding interest, taxes, depreciation and amortization (positive EBITDA)
EBITDA and cash flow are useful metrics to look at when evaluating whether or not a company can service debt, but I'm wondering why they needed to open a $600M credit line last month if they are gearing up for an IPO?
I guess they need a bit of extra cash on hand to pay off taxes as well as interest on their last 2 loans (funding rounds) from JPMorgan?
It's worth noting that they replaced an expiring $500million line of credit that had not been touched. So you may be reading a little much into what may just be prudent financial planning
EBITDA and cash flow are useful metrics to look at when evaluating whether or not a company can service debt, but I'm wondering why they needed to open a $600M credit line last month if they are gearing up for an IPO?
I guess they need a bit of extra cash on hand to pay off taxes as well as interest on their last 2 loans (funding rounds) from JPMorgan?