J jrewing Registered User Messages 554 4 Mar 2008 #1 I am currently carrying out a financial analysis of a company for a course assignment - this company states that it will "de-leverage the balance sheet" over the next few years. Can anybody help me understand what this means ?
I am currently carrying out a financial analysis of a company for a course assignment - this company states that it will "de-leverage the balance sheet" over the next few years. Can anybody help me understand what this means ?
T Trent Registered User Messages 124 4 Mar 2008 #2 In simple terms it means that the company plans to lower the debt to assets ratio.
T Trent Registered User Messages 124 4 Mar 2008 #4 Also, it's generally a sign of slowing growth in a company when it would rather reduce it's borrowings than gear up to fund further expansion.
Also, it's generally a sign of slowing growth in a company when it would rather reduce it's borrowings than gear up to fund further expansion.
E efm Registered User Messages 935 4 Mar 2008 #5 Trent said: Also, it's generally a sign of slowing growth in a company when it would rather reduce it's borrowings than gear up to fund further expansion. Click to expand... Or potentially part of an overall strategy to increase the attractiveness of a company before a takeover, restructure or sale.
Trent said: Also, it's generally a sign of slowing growth in a company when it would rather reduce it's borrowings than gear up to fund further expansion. Click to expand... Or potentially part of an overall strategy to increase the attractiveness of a company before a takeover, restructure or sale.