easy · Corporate Credit Analysis
If a company has a Gross Leverage of 6.0x and a Net Leverage of 2.0x, what does this most likely indicate to a credit analyst?
- The company has very low cash balances relative to its debt.
- The company has significant off-balance-sheet liabilities.
- The company is holding a massive cash balance, potentially from a recent debt issuance.
- The company's EBITDA is highly volatile.
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