Is it good if a company have negative debt to equity ratio? What does it mean?
Negative D/E ratio means that the value of the company is negative. It means that that the company’s liabilities are more than its assets. Refer this on Varsity for more.
Is it good to invest in a company whose debt to equity is negative? Plz help
It is not advisable to invest in a company which has negative debt equities ratio and also if it is more than 2. High debt will lead to more interest payments and less money to expand sales revenue.
Affects cash flow for day-to-day operation.
@rahulemaity -ve Debt to equity implies that the companies networth are -ve. It would be dangerous to invest in such companies.
2 Likes
Thank you so much all of you