033 - Is Debt Worth The Risk?
Do you want to know if your business is truly healthy? Listen to this 9 minute short to learn how to measure and calculate your current exposure to risk from the debt that you already have... oh, and maybe a little Shakespearian literature too. It’s simple. It’s quick. It’ll help you down the line.
Show Notes
Most companies have debt — it’s healthy. (1:30)
How to calculate the debt coverage ratio. (3:26)
How to calculate your current ratio. (5:28)
Lending is just as important as borrowing. (7:41)
Quotable Moments
“Debt creates enough risk to offset any possible advantage.” — Dave Ramsey (1:15)
“The thing about debt is that you have to pay it back. When we borrow money, we have to pay it back out of future profits.” (2:20)
“Although debt might work to smooth cashflow or speed growth, it is always a risk.” (2:50)
“Current assets are things like cash, accounts receivable, & inventory that are likely to be converted into cash over the next 30-90 days.” (5:39)
“Don’t be a borrower nor a lender be.” — Shakespeare (8:20)
Resources
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