Higher debt, palatable gearing

Predictable cashflow: Companies, including TNB, take on debt to optimise the capital structure. — Bernama

DEBT is an essential part of any business. All companies should have some amount of debt to help finance its growth and investments for the longer term. It is an efficient way of managing the balance sheet.

But taking on too much debt can restrict a company’s operational flexibility, and increase its risk of financial problems in a challenging economic environment.