Project Management
Business Accounting and Bookkeeping

What factors do affect a companys debt levels?

Top Answer
User Avatar
Wiki User
Answered 2014-11-20 03:35:30

One of the factors that may affect a company's debt level is management. Another factor that may affect debt levels is whether the company is making profits or not.

User Avatar

Your Answer

Still Have Questions?

Related Questions

What is gearing?

The relationship of debt to equity in a companys capital structure The more long term the debt the higher the gearing

Do instant loans negatively affect credit?

Credit scores are effected by many factors. One of the factors is how much debt you have in comparison to your income ratio. A high volume of debt, perhaps from an instant loan, when you have a low income, will negatively impact your credit.

What are 3 factors that can affect your credit score?

If you are employed, how much you already owe, If you pay your credit obligations on time, and your debt to asset ratio.

Does medical debt from years past affect my credit?

Medical debt does affect your overall credit score. However, when buying a house or car, most of the time medical debt is not factored into the equation.

What are the risks of high debt levels?

house/car repossession

How does a national debt affect a society?

it can do as it pleasessfasf

Will being in debt affect your credit rating?

Not generally.

What three factors was slavery based on?

war, debt, crime

What Factors which led to recession in US?

Houses and debt in crisis

What is the best company to cut your debt in half?

Reducing your debt by half is nothing but Debt reduction and in this process usually a debt negotiation is made so that your debt levels are decreased and settled in a possible shortest duration. Freedom Debt Relief is the Best company for your debt reduction. their Debt Reduction Program is an innovative solution for consumers struggling with debts.

What was the national debt levels from 1932?

The national debt in 1932 was about $19 billion. Even though it does not sound comparable, it was a major issue in the 1932 election.

What is debt management policy?

Debt management policy is a written guideline which affect the amount or it is a type of debt issue by a state or local government. Debt management policy provides justification for the structure of debt, improves the quality of goal etc.

If you already paid a debt how do you stop credit collectors from continuing to attempt to collect the debt?

have your recit,send them a copy. Or call who turned the bill in to colectors clear with who sent colector tocolect the paid bill if it is worng most companys will clear the colector account.

Traditionally what were the three factors on which slavery was based?

war debt, crime

Is better not to pay your credit cards or file for bankaruptcy?

{| |- | Bankruptcy is not an advisable option as it damages your credit for a long period of time, instead you can go for other debt relief options like debt consolidation or debt settlement. I consolidated my credit card debt with the help of Freedom Debt Relief, their debt reduction program helped me reduce my debt levels. |}

When debt-to-equity ratio rises why does the asset beta not change?

Asset Beta measures the inherent riskiness of the underlying assets with respect to the market. The equity and debt only affect the inherent riskiness of the firm, but the additional debt has no influence on the underlying riskiness of the assets.For instance, if you are in the hotel business, why should the amount of debt you have affect your ability to get visitors stay at your hotel? high debt does, however, affect the underlying riskiness of the equity (it is riskier to hold shares of a firm with large amounts of debt). therefore, the equity beta does change.

How did the thirty years war affect Germany?

it caused them major debt.

Breckenridge Ski Company has total assets of 422235811 and a debt ratio of 29.5 percent Calculate the companys debt-to-equity ratio and the equity multiplier?

What is given is: total assets = $422,235,811 Debt ratio = 29.5% Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio = total debt / total equity Total debt ratio = total debt / total assets Total debt = total debt ratio x total assets = 0.295 x 422,235,811 = 124,559,564.2 Total assets = total equity + total debt Total equity = total assets - total debt = 422,235,811 - 124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt / total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity multiplier = total assets / total equity = 422,235,811 / 297,676,246.8 = 1.418

Which of the following FICO credit scoring factors is carries the greatest weight?


If a firm went from 0 percent debt to successively higher levels of debt why would you expect its stock price to first rise then hit a peak and then begin to decline?


Can you emigrate to Australia if you are in debt?

Your credit rating is not checked for your migration application so it will not affect you getting your visa. However it may affect your credit rating in Australia as some banks carry this over and may affect getting a mortgage. If the debt is large there is every reason to suspect that they will track you down - paying off a £ debt on an $AUD income can be hard.

What factors might organisations consider when choosing between different sources of finance?

When considering financing, managers may consider the payback period and the interest rate. They will also consider how the debt will affect their cash flow.

How did increased individual debt among Americans contribute to the Great Depression?

Answer this question… Consumers with high levels of debt could not pay their bills if they were unemployed for even a short time.

Does attorney fees debt affect credit?

They don't unless you let the debt go and either the attorney or debt colletion agency reports it as part of their collection efforts. If that happens it can seriously damage your credit.

Will bad debt in Canada affect us immigration process?

Only if the debt is to court, provincial or federal government. Credit card debts are not counted.

Still have questions?