Harry Harman

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Naturally, you don’t want to borrow too much, or you’ll put your business in jeopardy. Remember interest expense will increase, so all else won’t really be equal. But if your ROA is healthy and your ROE is lackluster, it’s a safe bet you aren’t taking full advantage of the leveraging opportunities that are open to you. Some judicious borrowing can help your assets/equity ratio and thus your ROE.
Managing By The Numbers: A Commonsense Guide To Understanding And Using Your Company's Financials
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