Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that ‘Volatility is far from synonymous with risk.’ It’s only natural to consider a company’s balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We can see that Geely Automobile Holdings Limited (HKG:175) does use debt in its business. But should shareholders be worried about its use of debt?

Why Does Debt Bring…