VisualMod t1_j1fc05w wrote on December 23, 2022 at 10:12 PM

>There are a few reasons why companies might choose to carry more debt than cash on their balance sheets. One reason could be that they believe they can invest the borrowed money at a higher rate of return than the interest rate they would pay on the debt. Another reason could be that carrying more debt gives them certain tax advantages. And finally, some companies may simply feel like they have enough cash on hand and don't need to keep any extra as buffer.

345612345 t1_j1fd4cn wrote on December 23, 2022 at 10:21 PM

Very nice, Clippy! Then there are the tax evas...i mean planning schemes that include borrowing money subsidiaries don't really need, so they pay back loans instead of having taxable profit. And where they borrow the money from happens to be in a country with favorable taxation.