Discussion about this post

User's avatar
Leticia Souza's avatar

Leverage is such a dangerous tool for businesses. Further to meeting the interest payments, business need to be operated with such efficiency to not breach covenants that may put everything down to a death spiral. Have a look to what happened to Lojas Americanas in Brazil a few weeks ago.

Expand full comment
Marvyn Dodgers's avatar

Nice analysis, and great rowboat analogy

Expand full comment

No posts