High profitability linked to lower debt in top companies, study finds.
The article explores how a company's profitability affects its capital structure. They looked at different financial ratios to measure this relationship. The study found that higher profitability is linked to lower levels of debt in relation to assets and equity. This means that companies with better returns tend to have less debt compared to their overall financial structure. Other factors like growth rate, size, and liquidity also depend on how profitable a company is.