kayhara wrote:Someone was talking of KQ debt, how much does KENGEN owe?
BEFORE getting into this business of shares, watu wajifunze kusoma balance sheet!
There is no problem with having hundreds of billions of shillings in loans; the question is whether you have enough assets to cover these loans.
The answer is found in the balance sheet under the title "Shareholders' funds" a.k.a. "net asset value"
In the case of KQ it is a negative quantity. In other words, the loans (however small) are more than the assets!
In the case of KenGen it is a positive quantity. In other words, the loans (however large) are less than the assets.