Howard Marks put it nicely when he said that, rather than worrying about share price volatility, ‘The possibility of permanent loss is the risk I worry about… and every practical investor I know worries about.’ When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that Safran SA (EPA:SAF) does use debt in its business. But the more important question is: how much risk is that debt creating?

Why Does Debt…