Most companies need debt either for long term needs or for working capital. Some are using debt because cost of debt is lower and they can re invest surpluses at better rates
some companies use low rate of interest as a competitive advantage …
service based companies need little or no debt.
Consumer companies need debt in their first 10 years of existence and after that they are pretty much debt free …
There are parameters like Debt service coverage ratio and Interest coverage to check…
Hope this helps
Malolan
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