23-10-13 Michael Pettis: Xina’s Changing Economy Will Impact World - CGSP > .
23-9-29 Decoding P00ti-PooXi blueprint for NoXious World Order | DW > .
23-9-25 Xi's Transforming Xina [for the worse] - Xina's Changing Trajectory - Dig > .
23-9-24 $6.5T Problem: BRI, Unproductive, Decaying Infrastructure | EcEx > .
23-9-7 Xi's Mess: Wartime Economy Rising, Imminent Societal Collapse > .
23-4-16 Logan Wright Grasping Shadows X-Ec 1 - Update > . 2 > .
23-1-20 Xi's Biggest Errors - Kevin Rudd | Update > .
22-11-27 Dragon's Claw: Xina's Next 10 Years - Kamome > . skip > .
22-11-1 "Overreach" | Susan Shirk, Kevin Rudd | Asia Society > .
22-10-27 Xina is "Pretty Much Screwed" - laowhy86 > .
22-10-25 Xina's Q3 details - Update > .
22-8-18 Xina's Economic Crisis Worsening (Housing Collapse Explained) - New > .
22-8-3 We need to pay close attention to XiXiP activities - CR > .
22-7-28 Have Mao and Deng predicted XXP's downfall? Untold history of China - Lei > .
22-6-28 China's Major Tax Problem - EcEx > .
22-4-26 Political struggle of central vs local governments & debts - Lei > .
22-4-21 Fake data re Chinese economy: GDP, import-export, unemployment - Lei > .
22-3-28 China's Economic Rise—End of the Road - cfr > .
An economy or business is said to be overleveraged when it is carrying too much debt when compared to its operating cash flows and equity. An overleveraged nation/company has difficulty in paying its interest and principal payments and is often unable to pay its operating expenses because of excessive costs due to its debt burden, which often leads to a downward financial spiral. This results in the company having to borrow more to stay in operation, and the problem gets worse. This spiral usually ends when a company restructures its debt or files for bankruptcy protection.
22-1-23 China’s Domestic Drivers | Kevin Rudd - geopop > .
- A company/economy is said to be overleveraged when it has too much debt, impeding its ability to make principal and interest payments and to cover operating expenses.
- Being overleveraged typically leads to a downward financial spiral resulting in the need to borrow more.
- Companies/economies typically restructure their debt or file for bankruptcy to resolve their overleveraged situation.
- Leverage can be measured using the debt-to-equity ratio or the debt-to-total assets ratio.
- Disadvantages of being overleveraged include constrained growth, loss of assets, limitations on further borrowing, and the inability to attract new investors.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.