Originally Posted by
phkc070408
To add to this, removing the liabilities won't change the stock price, since the decrease in liabilities will be offset by the decrease in revenue (thus cash). It will, however, make some of the basic financial radios, such as the Current Ratio (Current Assets / Current Liabilities) shift in their favor. Also, removing the liabilities will put the company in a better position in the next downturn.
the financial impact of the miles liability on share price is minimal as the value of faux mileage currency is 100% in control of the company. With a stroke of a pen, this liability could be reduced 10x and the only loss would be 5 low value FT customers.
It is amazing how many play the game of banking huge balances of faux currency then feel grifted trying to redeem the script at the company store.