I think properly structured debt is actually a good thing. If a company have decent ROIC, and can reliably earn more than interest, why not taking debt? In a way, leveraging also increases management discipline.
The debt I speak about is based on a too top heavy debt that is crushing the organization. If you get great scores from me in 9 to 10 other fundamentals, you can have heavy debt because it will create equity, assets and margin expansion.
I think properly structured debt is actually a good thing. If a company have decent ROIC, and can reliably earn more than interest, why not taking debt? In a way, leveraging also increases management discipline.
The debt I speak about is based on a too top heavy debt that is crushing the organization. If you get great scores from me in 9 to 10 other fundamentals, you can have heavy debt because it will create equity, assets and margin expansion.