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Can all types of companies maintain a high financial leverage in their capital structure?
Wiki User
∙ 11y ago
No
Company is defined by rules which they WANT to operate.
Companies have to be worthwhile for someone/thing to lend them money.
What company makes money on does not matter much though, like food, computer, service,bank etc.
Wiki User
∙ 11y ago
No, not all types of companies can maintain a high financial leverage in their capital structure. The ability to maintain high leverage depends on various factors such as the industry, profitability, risk profile, and cash flow generation of the company. Companies with stable and predictable cash flows, low business risk, and high profitability are better positioned to maintain high financial leverage. However, companies with volatile cash flows, high business risk, and lower profitability may face difficulties in maintaining high leverage.
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