Higher debt, palatable gearing

TheStar Sat, Dec 29, 2018 10:01am - 5 years View Original


Predictable cashflow: Companies, including TNB, take on debt to optimise the capital structure. — Bernama

Predictable cashflow: Companies, including TNB, take on debt to optimise the capital structure. — Bernama

DEBT is an essential part of any business. All companies should have some amount of debt to help finance its growth and investments for the longer term. It is an efficient way of managing the balance sheet.

But taking on too much debt can restrict a company’s operational flexibility, and increase its risk of financial problems in a challenging economic environment.

So, there is only a fine balance between what is regarded as “healthy” and “dangerous” debt level and it varies across businesses and industries.

...

Full Article on TheStar

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

ARMADA 0.580
ASTRO 0.300
BURSA 7.470
GENTING 4.450
IHH 6.120
MALAKOF 0.660
MAXIS 3.500
MRCB 0.630
SENDAI 0.390
SIME 2.780
SIMEPROP 0.890
SPSETIA 1.320
TENAGA 11.600
TM 6.070
TOPGLOV 0.810
UEMS 1.010
WCEHB 0.890
WCT 0.510
YTL 2.600
YTLPOWR 4.020
ZELAN 0.065

Comments

Login to comment.