, Columnist
Surviving the Airline Wipeout Isn’t About Balance Sheets
In a crisis, what matters are connections to governments and wealthy patrons.
Only the well-connected survive.
Photographer: Munshi Ahmed/Bloomberg
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Faced with an industry heading toward a wave of bankruptcies, an investor’s first instinct is often turning to the first three pages of the financial statements.
How much cash does the business have on hand, and what inventories and due payments can be used to meet short-term debts? What assets does it have, and how productive are they in generating earnings?