VC - Adient: A Strong Cash Position Will Allow The Company To Deleverage Its Balance Sheet

• Shares of Adient are trading about 57% lower from all-time highs as a result of deteriorating sales and margins.
• A P/S ratio of 0.275 means the company is trading at very low prices, but this is accompanied by increased risk.
• The company is overleveraged considering interest expenses are as high as cash from operations.
• The company has raised a lot of cash, which should help the company to pay down over 30% of long-term debt in the near future.
• The first quarter showed a big improvement in sales and margins, and the company is making new deals to further improve sales and volumes.

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