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Excessive liabilities

Assessing Risks Stemming from Excessive Current Liabilities

December 23, 2023

What are the risks associated with having excessive current liabilities?

Excessive current liabilities pose risks such as increased interest expenses, cash flow strain, and heightened default risk. Heavy reliance on short-term debts can lead to liquidity issues, affecting operational capabilities and hindering growth opportunities. Additionally, high current liabilities may signal financial distress, impacting investor confidence and creditworthiness.

Tags : Excessive Liabilities , Financial Risk , Debt Management

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