The Causes and Countermeasures of High Debt Ratio in Real Estate Enterprises

Yuting Shao

doi:10.54097/r8xej287

Authors

Yuting Shao

DOI:

https://doi.org/10.54097/r8xej287

Keywords:

Asset liability ratio, Real estate, Optimization of capital structure.

Abstract

Real estate companies generally have a high debt to asset ratio, which not only brings more profits but also brings more risks. Therefore, maintaining a reasonable debt to asset ratio is of great significance to enterprises. This article first lists the significance of reducing the excessively high asset liability ratio of enterprises, and then analyzes the reasons for the high asset liability ratio of real estate enterprises. Targeted suggestions are given to address this phenomenon, hoping to provide some help for the optimization of the asset structure of real estate enterprises.

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