Wick

Debt decides who survives

Reading a Company

Leverage cuts both ways

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…

  1. When business is booming
  2. During downturns and rising rates correct
  3. 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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