Adani's debts exceed 1% of Indian economy

https://asia.nikkei.com/Business/Companies/Adani-Group/Adani-s-debts-exceed-1-of-Indian-economy

by totalZero • 3 years ago

5 2 3 years ago

asia.nikkei.com

evanb• 3 years ago

This article commits the most annoying [to me] error in financial reporting: it compares a debt [rupees] with GDP [rupees per year], comparing two quantities with different units. Compare Adani's debts to all the wealth in India, for a fair comparison. Or compare the rate at which Adani has accumulated its debt to the GDP.

rhaway84773• 3 years ago

This is not that egregious at all.

It’s basically saying Adani’s debt exceeds 1% of the Indian economic output every year.

There’s nothing wrong with comparing different units if the comparison makes sense.

For example, there wouldn’t be anything wrong about saying “the distance he needs to cover is half the speed limit”. You’re comparing 2 different units, miles and miles/hr (or kms and kms/hr in most countries). That doesn’t make the statement wrong.

Also, comparing the speed at which Adani accumulated debt vs gdp is absolutely pointless. It gives no useful information whatsoever. Providing the debt amount vs GDP absolutely helps place it in context. Knowing that Adani’s debt is equivalent to 1% of the annual output of the entire Indian economy helps put its size in context extremely well. Much better than the examples you’ve given.

Adani's debts exceed 1% of Indian economy

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