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Unburdening themselves

Here are some companies that have significantly reduced their debt over five years

Unburdening themselves

Debt may provide a company flexibility in its operations in the short run, but it's also a claim on its future earnings; debt requires regular interest payments, even when a company is making losses. Hence, companies which are debt-free or have little debt have an edge over the indebted ones. Here are some companies which have reduced their debt-to- equity ratio from over one to less than 0.25 times over five years. And this has happened in an environment when interest rates are falling and many companies are taking on cheaper debt