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RE: LeoThread 2025-03-13 06:13

in LeoFinance7 months ago

Part 4/8:

Key to understanding the balance sheet is the debt to equity ratio, which measures how much debt a club carries relative to its equity. A high ratio often signifies that a club is heavily leveraged, which can result in substantial interest costs reflected in the profit and loss statement in subsequent years. While clubs with low debt ratios might appear healthier, it can also indicate the presence of very wealthy owners, requiring further examination for a complete picture.

The Cash Flow Statement