Borrowed money magnifies good years and destroys companies in bad ones. A business with heavy debt has to keep performing just to service it; a business with little debt can have a terrible year and simply wait. When rates rise or a recession lands, debt is usually what separates the survivors from the headlines.
Check yourself
Heavy debt matters most…
When business is booming
During downturns and rising rates correct
Never, if revenue is growing
Debt is invisible in good times and decisive in bad ones. That is exactly why it gets ignored until it cannot be.
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