Decreased leverage: Debt/equity for listed SMEs at lowest in years

Part-II of the series examines the improving balance sheets of SME-listed companies and their relatively conservative approach to debt after Covid-19

Companies listed in the small and medium enterprise (SME) segment have significantly decreased leverage amid rising profitability.

 

The debt/equity ratio of 0.5 in FY24 is the lowest since at least FY18, shows a Business Standard analysis of data covering 183 listed SME companies with numbers available for at least seven years. The SME segment only provides financial statements twice a year, compared to four times for listed companies.    

The analysis here is based on the latest available FY24 results. 

ALSO READ Part 1: SMEs' operating cash flow fell 69% in FY24; sales and profits outperformed

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