5 Transportation Stocks With Huge Debt Compared to Cash

The following five companies in the Transportation sector have high debt-to-equity levels.  Note that this list excludes all companies whose market capitalization is less than $500 million.

  1. US Airways Group, Inc. (NYSE:LCC):  The shares have traded in a 52-week range of $6.60 to $12.26 and most recently traded at $9.51 per share.  The company has debt of $4.29 billion and its debt to equity ratio cannot be calculated (liabilities exceed assets and so its equity is negative).  Its market capitalization is $1.54 billion.  About the company: US Airways Group, Inc. is an air carrier that transports passengers, property, and mail.  The Company provides regularly scheduled service at airports in the United States, Canada, Europe, the Caribbean, and Latin America.
  2. Delta Air Lines, Inc. (NYSE:DAL):  The shares have traded in a 52-week range of $8.91 to $14.54 and most recently traded at $10.87 per share.  It has $15.22 billion in debt and a total debt to equity ratio of 2,008.58.  It has $3.84 billion in cash, a current ratio of 0.65 and a book value per share of $0.90.  Its market capitalization is $9.18 billion.  About the company: Delta Air Lines, Inc. provides scheduled air transportation for passengers, freight, and mail over a network of routes throughout the United States and internationally.
  3. United Continental Holdings, Inc. (NYSE:UAL):  The shares have traded in a 52-week range of $17.14 to $29.75 and most recently traded at $25.71.  It has $14.58 billion in debt and its total debt to equity ratio is 762.76.  It hold $8.89 billion in cash, its current ratio is 0.95, and its book value per share is $5.80.  Its market capitalization is $8.51 billion.  About the company: United Continental Holdings, Inc. is an airline holding company.  The Company owns and operates airlines that transport persons, property and mail throughout the United States and abroad.
  4. Danoas Corporation (NYSE:DAC):  The shares have traded in a 52-week range of $3.50 to $7.87 and most recently traded at $7.09 per share.  It has $3.02 billion in debt and its total debt to equity ratio is 768.82.  It holds $229.84 million in cash, its current ratio is 1.08 and its book value per share is 3.61.  Its market capitalization is $770.16 million.  About the company:  Danaos Corporation owns a fleet of containerships.  The Company charters these vessels to liner companies.
  5. Frontline Ltd. (NYSE:FRO):  The shares have traded in a 52-week range of $20.55 to $36.85 and most recently traed at $20.97 per share.  It has total debt of $2.89 billion and a total debt to equity ratio of 38136.  It has $228.12 million in cash, a current ratio of 1.17, and a book value per share of 9.6.  Its market capitalization is $1.63 billion.  About the company: Frontline Limited owns a fleet of very large crude carriers and Suezmax tankers that transport crude oil and oil products between ports.  The Company’s vessels are managed by ship management companies.  Frontline conducts activities worldwide.

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Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

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