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.’ 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 COSMOS Pharmaceutical Corporation (TSE:3349) does use debt in its business. But the real question is whether this debt is making the company risky.

What Risk Does Debt Bring?

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