CS CGP - Hutchison Telecommunicatio Company Director

Hutchison Telecommunications Hong has accumulated 460 M in total debt with debt to equity ratio (D/E) of 0.04, which may suggest the company is not taking enough advantage from borrowing. Hutchison Telecommunicatio has a current ratio of 2.31, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. Debt can assist Hutchison Telecommunicatio until it has trouble settling it off, either with new capital or with free cash flow. So, Hutchison Telecommunicatio's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Hutchison Telecommunicatio sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Hutchison to invest in growth at high rates of return. When we think about Hutchison Telecommunicatio's use of debt, we should always consider it together with cash and equity.