Ok so if a business a) has limited management bandwidth and many promising options or b) has a particularly cyclical/risky business model that results in a high

Ok so if a business a) has limited management bandwidth and many promising options or b) has a particularly cyclical/risky business model that results in a high cost of borrowing then you're right. These are somewhat linked to profitability as you say, but a safe slow-growth company generating massive profits (eg Coca-Cola) doesn't face this.