Valeant is done as a stock, 100%. It was the first though that came to my mind when I took a look at their financials. Moreover, when you read such news as this one, you think that the stock is really done. The $5.6 billion Sequoia Fund SEQUX, -0.64% which follows a non-diversified buy-and-hold strategy, has been hit hard by its stake in Valeant. That holding accounted for more than 30% of its portfolio at one point in 2015, The Wall Street Journal has reported. The fund posted a 7.3% loss in 2015 and is down almost 12% so far this year Now let's take a better look at their financials, check if they can pay out their debts. Valeant's long-term debt is $30B, plus its current liabilities are over than $4B and deferred tax that exceeds $6B. Total debt is over than $40B, while their cashflow from operating activities is just $1.7B for nine months, perhaps it will be $2.3B for the whole year plus around $1.4B in cash, $2.7B in accounts receivables and $1.2B in inventories. So what we have: Current liabilities: $4B Cash / inventories / accounts receivables: $4.9B (it will most likely be around $5.4B-$5.6B for twelve months). Conclusion: the company is able to cover their current liabilities. Long-term liabilities. According to the company's debt repayment schedule, they will have huge payments in 2020 totaling around $5B, till that time they need to pay out around $2.8B, other payments are distributed throughout 5 years till 2025. The scheme is below: As for me, it doesn't sound as negative as all the traders think. Their weak outlook is weak only for the analysts that were too optimistic. I think that VRX has a huge chance to significantly bounce back perhaps to $45-$50 levels. I completely changed my mind about the stock when I analyzed their latest financial reports. If you think that VRX debt is their trouble, you need to understand that people who are saying this are in trouble.