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Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Ultimately, if ...

So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. The first thing to do when considering how much debt a business uses is to look at its cash and debt together. However, it does have kr9.41b in cash offsetting this, leading to net debt of about kr86.5b. Thus we consider debt relative to earnings both with and without depreciation and amortization expenses. Hypothetically, extremely heavy dilution would be required if the company were forced to pay down its liabilities by raising capital at the current share price. What we care about is avoiding the permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. If earnings continue on that decline then managing that debt will be difficult like delivering hot soup on a unicycle. But the more important question is: how much risk is that debt creating? Offsetting these obligations, it had cash of kr9.41b as well as receivables valued at kr22.9b due within 12 months. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing.