Vail Resort : Company Debt

994 Words Mar 23rd, 2015 4 Pages
Vail Resort – Company Debt
Vail Resorts is a premier mountain resort company and a leader in luxury. Vail Resorts has four ski resorts in Colorado, which include Vail Ski Resort, Beaver Creek Resort, Keystone Resort and Breckenridge Ski Resort. Other Vail Resorts in other states include two in Utah, one in Minnesota, one in Michigan, and one summer resort in Wyoming (Who we are, 2015). The Vail Resorts Company trades on the New York Stock Exchange with the symbol of MTN. Their headquarters is located in Broomfield, Colorado. Much like any other company that needed to raise money for inventory purchase or business expansion. Vail Resorts issued bonds as one way to raise money for future purchases or investments. Bonds function like a loan between a corporation and the investor. Other word, a bond is an instrument of indebtedness of the bond issuer to the investors, meaning that bonds are a debt security (Vail Resorts, 2014). To fully understand Vail Resorts debt, you need to look how much company debt Vail Resorts has, along with the risk of debt. According to the report, Vail Resorts Net Debt is defined as long-term debt plus long-term debt due within one year less cash (Vail Resorts, 2014).
As long as companies wisely use the money borrowed, business can dramatically increase revenue and pay off debts. Long-term debt as of July, 2014 consist of the following. Vail Resorts has Industrial Development bonds consisting of (in thousands) $41,200 (Vail Resorts, 2014).…
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