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Too much debt is not a good thing. It represents risk. But taking on risk is what companies do. Without it, there would be no
Too much debt is not a good thing. It represents risk.
But taking on risk is what companies do. Without it, there would be no reason to expect a profit.
So how much is too much risk? As a Financial Manager how much debt do you decide to take on.
The following article explains an important ratio used to analyze appropriate levels of debt in a company.
http://www.investopedia.com/terms/l/leverageratio.asp
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