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Looking at absolute levels of debt is useless clickbait, one should look at trends in debt / ebitda.
by formercoder 7y ago
Looking at absolute levels of debt is useless clickbait, one should look at trends in debt / ebitda.
- ummonk 7y agoEBITDA is cyclical though. Debt / revenues would be a better measure.
- formercoder 7y agoRevenue is cyclical too, I’d look at headroom for downturns in debt/ebitda especially where firms start to slip into junk bond territory.
- XnoiVeX 7y agoExcellent analysis by Deloitte. https://www2.deloitte.com/us/en/insights/economy/issues-by-the-numbers/rising-corporate-debt-levels.html https://www2.deloitte.com/us/en/insights/economy/issues-by-t...
- ummonk 7y agoI wonder how much of the rise in percent of debt that was poor quality was fueled by investors seeking higher bond yields in a low yield environment...