large volume trade - what happened?, page-14

APJAPJ - you're more analytical than me! I think the amount of debt they're taking on is by choice. They could gradually replace it by equity if they really wanted to (without significant dilution), but perhaps debt funding has been a relatively cheap option over the last few years?

The point at which the business becomes self-sustaining is indeterminate, given their willingness to carve out more and more market share.

In aggregate, their contracts are reasonably profitable. If SIV were to voluntarily stop growing tomorrow, the question to ask is: Would they be able to maintain their current level of profits, and would their cashflow be more than enough to repay interest on the current level of debt + equipment depreciation + dividend payout?

If "yes", then I'd be happy with their model.