What are the risks when a company has a negative equity ratio ?

Challenges may face if negative equity

1.. Payment to creditors

2.. Bank financing

2..  Letter of credit

4... loss of reputation

5... short of cash fo company operation

 

1. Loss on Investments

2. Company Share price gets down

3. Lossing Goodwill

4. Risk of Closure 

The debit -equity ratio is another leverage ratio compares a company total libilities to its total shareholders ' equity To a large degree the debit equit y ratio provides another vantage point on a company 's leverage position ,in this case comparing total libilities to shareholders equity ,as opposed to total assets in the debit ratio