Hello Sir
Sir what does negative debt to equity ratio means.
Is it good for the company?
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Well, for debt to equity ratio to be negative, either the debt or the equity has to be negative.
Now I can’t think of any reason where the debt might be negative in a company. It’s like you either have debt/loans to repay or you simply don’t. I don’t think there is any situation where debt is negative.
So the equity would have to be negative. That means the company has huge huge losses that the loss ate up the equity contribution by shareholders.
So that is a bad situation for the company.