When we think about how risky a business is, we always like to look at its use of debt because debt overload can lead to bankruptcy. We note that CK Asset Holdings Limited (HKG: 1113) has debt on its balance sheet. But should shareholders be concerned about its use of debt?
Why Does Debt Bring Risk?
Debt only becomes a real problem when a company cannot repay it easily, either by raising capital or with its own cash flow. An integral...