Dutch companies have “significantly” less debt

The so-called average debt ratio, the debt divided by the total balance sheet of companies, has fallen from 50 percent in 2006 to 40 percent in 2022. During the same period, the debt ratio in neighboring countries Belgium, Germany and France has remained. relatively the same. In addition, companies are better able to pay interest costs due to their increased profits.

The fact that the average debt ratio of Dutch companies is decreasing is positive, but a debt ratio that is too low can cause problems. Debt is essential to finance large investments. Companies cannot always make important purchases themselves, such as new machines or buildings. In such cases, a lender like a bank is required.

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