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“Growth for the sake of growth is the 'ideology’ of the cancer cell.” -Edward Abbey

• constantcrying 3y ago
  Companies do not grow for the sake of growth. Many would outright go bankrupt if they stopped growing, as debt grows continually while they do not.
  • Ekaros 3y ago
    Then they have taken too much debt. And deserve to fail. A well run company only takes debt when return on investing it is larger than the interest and paying it back. Thus being able to use leverage for profits on net. On other hand modern finance system with many public company is often short term idiotic one where debt is used to pay out to investors... Exactly like PE does...
    • constantcrying 3y ago
      >Then they have taken too much debt. And deserve to fail. Many companies can not exist without taking on debt. Manufacturing can be extremely capital intensive and if every company had to wait for the profits of its previous product to finance its next product almost nothing would be made. >A well run company only takes debt when return on investing it is larger than the interest and paying it back. This is an unknown quantity. And it also growth as debt is taking on for the sake of increasing revenue. Taking on debt without expecting an increase in revenue from investing that money is insane for a company.