How can you determine if a company has too much debt?
Debt is a common and often necessary source of financing for businesses, but too much of it can pose serious risks. Excessive debt can limit a company's flexibility, increase its interest expenses, and reduce its profitability and cash flow. It can also make a company more vulnerable to economic downturns, competitive pressures, and credit rating downgrades. How can you determine if a company has too much debt? Here are some useful tools and ratios to help you assess a company's debt situation.
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Deneshree GovenderExperienced Board Member | Chairperson | Strategist | Seasoned Leader | Keynote Speaker | Governance, Risk & Compliance…
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Tomi Akinwale ACCA, ACA, ACTI, B.TECH, FMVA, AAT.Tax | Deloitte | Financial Reporting & Modelling |
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CA Ravi ThankiI practice audit and assurance, financial reporting, and tax compliance.