Australian Mercantile Collections

Hansung Cleantech (KOSDAQ:066980) Use Of Debt Could Be Considered Risky

Hansung Cleantech (KOSDAQ:066980) Use Of Debt Could Be Considered Risky

Warren Buffett famously said, ‘Volatility is far from synonymous with risk.’ 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. Importantly, Hansung Cleantech Co., Ltd. (KOSDAQ:066980) does carry debt. But is this debt a concern to shareholders?

When Is Debt A Problem?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company…

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