SpaceX's Capital Spending Was 2.4 Times Its Revenue Last Quarter. The IPO Left $93.5 Billion to Cover It.
The cash pile sounds bottomless. The spending plan it funds is built to outgrow it.
Overview
SpaceX(NASDAQ:SPCX) spent $18.37 billion on capital projects in the second quarter. It booked $7.81 billion of revenue. For every dollar of that, about $2.35 went out for data centers, chips, satellites, and rockets. That ratio was deliberate.
What makes the arithmetic possible is the balance sheet June's initial public offering (IPO) built. SpaceX ended the quarter with $93.5 billion of cash and equivalents, up from $24.7 billion at the end of last year.
Details
The offering raised about $85.7 billion in net proceeds, and a debut bond sale in late June raised $25 billion more, most of which repaid a bridge loan.
Source
Originally published at www.fool.com.
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