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There are lots of companies that prefer to run debt-free and that doesn't mean they are run wrongly.

• skookumchuck 8y ago
  Even if they are net debt free, they often run a line of credit to even out the bumps between when money is received and when it must be disbursed (such as for payroll).
• simula67 8y ago
  Your parent comment did not make that claim
  • gpvos 8y ago
    It claimed that companies do not prefer to run debt-free. Many do prefer that. Then I added a secondary claim of myself.
    • airstrike 8y ago
      > Many do prefer that. No, they don't, unless they're small companies who are very risk-averse perhaps. I'd wager there isn't a single debt-free company in the Russell 2000 index.
      • gpvos 8y ago
        That's restricting the definition of company a lot. (Note that I'm not saying that most companies run debt-free, just that it's a somewhat significant percentage, almost certainly double-digit. Probably mostly smallish companies indeed. Mostly single-owner or family-owned I guess. And, as a nearby comment said, almost all will take on temporary debt to smooth operations when needed. I worked for one with about 80 employees, but not in the financial department.)