Did you know how debt influences the profit?

                                                                                   source:pexels.com
 Did you know how debt influences the profit?

        Debt has a greater influence affecting the profit of the company.Debt determines the amount of tax that a company has to pay to their funding institutions.From the below example you could easily understand how a debt free company has a great benefit over its profit.

From the above example you could really understand that the profits for both the company was same,although the company A has no debts whereas company B has debt.Thus debt influences the profit by paying a 30% tax over every profits making the earings of the company B Lower.