Is Haitian International Holdings (HKG:1882) Using Too Much Debt?
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Does Singapore Myanmar Investco (SGX:Y45) Have A Healthy Balance Sheet?
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March 03, 2021 David Iben put it well when he said, Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital. It s only natural to consider a company s balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly,
Singapore Myanmar Investco Limited (SGX:Y45) does carry debt. But is this debt a concern to shareholders? When Is Debt A Problem? Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of creative destruction where failed businesses are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool
Is Train Alliance Sweden (STO:TRAIN B) Using Too Much Debt?
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March 04, 2021 David Iben put it well when he said, Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital. It s only natural to consider a company s balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly,
Train Alliance Sweden AB (publ) (STO:TRAIN B) does carry debt. But the more important question is: how much risk is that debt creating? Why Does Debt Bring Risk? Generally speaking, debt only becomes a real problem when a company can t easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses,
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the.
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