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    Should you buy Spirit Airlines stock?It's pretty simple: Don't buy stocks of companies that continue to lose money and have insurmountable piles of debt. One might argue that Spirit Airlines is cheap, given the current discount to book value. Book value is an estimate of the net worth of a company's balance sheet; it takes all of a company's assets and subtracts the liabilities.
    Is Spirit Airlines a risky company?Spirit Airlines shares have plunged from a record high of $77 to less than $4 today. The company faces significant risks, including maturities worth about $2 billion. Its business is slowing, losses are rising, and competition is becoming stiff. Follow Invezz on Telegram, Twitter, and Google News for instant updates >
    Will Spirit Airlines continue falling?Therefore, I suspect that it will continue falling as sellers target the support at $3.0. However, it is still highly risky to place a short trade on Spirit Airlines because it can be a good candidate for a short-squeeze as we saw with Faraday Future and GameStop.
    How bad are Spirit Airlines' earnings & cash flow statements?The earnings and cash flow statements for Spirit Airlines are ugly. Its liabilities look even more concerning. Spirit has over $3 billion in long-term debt and $157 million in debt due within the next 12 months. It is hard to see how it will pay back this debt if it keeps burning cash flow and losing money.
     
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