Hi, one of the issues that I see with Va tech is a non-lucrative business. I usually look at Ebitda/Total Assets ratio to gauge if a company can utilize debt to grow in case of a growth scenario. The company’s ebitda/total asset ratio has always hovered around 7.5% which means if they take debt at interest rates more than 7.5% that will incrementally diminish shareholder earnings (present interest rates for corporate clients are at 9%+). The company in its present form is unable to use debt to grow and thus I remain skeptical on any potential for realized growth unless something inherently changes in the business.
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