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AustinPowers007 t1_jaedaow wrote

Reply to comment by New-Sky8027 in Rolls Royce Holdings PLC recovery play, aiming for 7 figures by 2024. by New-Sky8027

problem isnt their opperations which look positioned in perfect place problem is with their debt and contract liabilityes which amount to huge sums and are kinda hard to dissect and compare it to FCF per year to know the amount of refinancing that will be needed until liabilityes are under control; this year they made huge FCF but in the end ended in negative cause liabilityes.

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[deleted] t1_jaf2559 wrote

uk gov will never let them go under and they have a golden share

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New-Sky8027 OP t1_jaefod4 wrote

Debt is fixed at a low rate from years ago and so getting cheaper with time.

All companies operate with debt, and RR is expected to improve to £800M FCF for 2023. None of this is a threat unless international flying stops altogether.

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