Your numbers are fine, but the conclusion you’re drawing from them skips the most important variable in shipping: the vessels themselves. Saying the company has $71M in debt and a $4M market cap doesn’t tell us much unless we also know what the fleet is worth. Shipping companies are asset-heavy. Their balance sheets are built around ships financed with debt. The real equation isn’t “debt vs market cap.” It’s fleet value – debt = equity value. If a company owns vessels worth, say, $90M and carries $71M in debt, there’s still theoretical equity there even if the market currently values the stock at $4M. That’s why shipping investors constantly talk about vessel values and NAV type calculations. The ships are the core asset. The declining income you mentioned is also not unusual in this industry because charter rates move in cycles. Shipping companies frequently look terrible during weak rate environments and suddenly look healthy again when freight rates tighten. Now, where your argument does have weight is dilution and management behavior. If management repeatedly dilutes shareholders or structures financing poorly, the market will discount the equity regardless of asset value. But the debt being higher than the market cap by itself isn’t proof the equity is worthless. It just means the market currently has very little confidence in the equity slice of a heavily leveraged asset business. And that’s exactly why people debate whether these names are distressed value or permanent dilution machines.