If a company is highly leveraged, this means that it has relatively low risk of not being able to repay its debt.

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If a company is highly leveraged, it means that it has a large amount of debt compared to its equity. This puts the company at a higher risk of defaulting on its debt obligations as it may not have enough cash flow to meet its debt payments. Therefore, a highly leveraged company has a higher risk of defaulting and is considered to have higher risk.

If a Company Is Highly Leveraged, This Means That It