Can you please explain if a company can have too little debt?© BrainMass Inc. brainmass.com June 3, 2020, 5:24 pm ad1c9bdddf
Yes. A company can have too little debt. This could be by design or by default.
For example, most of the IT companies in India, which are providing very outsourcing services to the US IT majors, had very little debt in their capital structure.
Reasons for low debt:
1. For start up companies, the ...
This post provide a list of possible reasons why one can find very little debt in the balance sheet of a company. The reasons include by default or by design...