Public vs. Private — Wall Street Sways Fortunes

“There are some pretty healthy ROI numbers out there; our return on equity was like 22.8 percent,” Baksha notes. “If you have a solid return on investment, and cash flow for debt service, borrowing money is no big deal at all—whether you’re public or private. A negative net profit doesn’t mean anything if you have 10 percent or more EBITDA and 25 percent return on equity. At that point, who cares what your net profit is, because you’ve got cash flow and ROI that rivals anybody.”