KIE

The trouble with net debt…

Net debt is a vital metric for investors and lenders. What ultimately kills companies is when they are unable to pay their debts when due. Hence, measuring the ratio of net debt to profits (and cashflow) is crucial to judging a company's ability to pay and whether it is likely to find itself in trouble, potentially leading to a permanent loss of capital for investors. Therefore it is very troubling that there have been several instances in recent years where reported net ...