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Trading glossary · fundamentals

debt

Money a company has borrowed and must pay back, usually with an extra charge for borrowing.

The fuller meaning

Borrowed money a company must repay with interest, listed among its liabilities. High debt raises risk when rates rise or profits dip; the debt-to-equity ratio compares borrowing with shareholders' money, and a company with lots of debt and little cash can struggle even while profitable.

debt.

Related words

adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank