What Does Deleveraging Mean?
Wednesday July 16, 2008
As the credit crisis has continued, you may have heard that many companies and individuals have been deleveraging their balance sheets. You may not understand what these means. In simple terms, it comes down to reducing the percentage of a balance sheet made up of debt either by generating cash from operations (in the case of a corporation) or working (in the case of a person) or selling off assets such as real estate, stocks, bonds, divisions, subsidiaries, etc. Continue reading about deleveraging.
After listening twice to Warren Buffet on the Charlie Rose show today, I wondered what Buffet meant by “deleveraging”. Thanks to your site, I now know. Thank you. I’ve saved your site in my favorites folder.