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>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
by 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.