Debt can be neatly understood as leanness going into the negative. Unlike human bodies, orgs can go lean beyond zero into negative weight
Conversation
Replying to
hmm. Wouldn't (shouldn't) lean be measured by the asset side of the balance sheet, not the finance side?
1
Replying to
1
1
3
Replying to
Debt leverages equity, enabling accumulation of assets now by exploiting future cash flows. Nothing necessarily lean about that.
2
Replying to
you're confusing map for territory. An 'asset' is a reification of a bit of reality whose behavior is assumed under control
1
That assumption rests on how much you have left to learn from it. Fat = insurance against whatever you might learn...
..."lean" is assumption you're in dim returns part of learning curve of asset so you can bound ROI enuf for debt leverage
1
fun eg by ... You bought shiny new $1mm Heidelberg press in 1999. Next day, blogs are invented. Asset or liability?
1
1
Show replies
