low debt

USAGE SUMMARY

The phrase "low debt" is correct and usable in written English.
It can be used to describe a financial situation where an individual or organization has a small amount of debt relative to their income or assets. Example: "The company's low debt allows it to invest more in growth opportunities without the burden of high interest payments."

✓ Grammatically correct

News & Media

Formal & Business

Wiki

Science

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

First, low debt helps.

The Economist

In particular, he wants companies to have relatively low debt and adequate working capital.

The New York Times

The analysts look for rising free cash flow and low debt levels.

The New York Times

Rapid wage growth and low debt make consumers more robust.This is partly luck.

The Economist

Its economy may shrink by 2%, but it has a solid banking system and low debt.

The Economist

And, fortunately, we have very low debt; the most would be 50 percent.

The New York Times

With relatively low debt, German households and firms can borrow more.

The Economist

MetroPCS, on the other hand, has performed well and done so with relatively low debt.

The New York Times

Low debt and high reserves mean the Kremlin could easily finance wage growth.

The Economist

It has low debt, and little desire to expand outside Spain and Portugal.

The Economist

He wants to see a strong capital structure, with low debt and high amounts of free cash flow.

The New York Times

Expert writing Tips

Best practice

When discussing a company's financial health, use "low debt" in conjunction with other positive indicators like strong cash flow and high equity to paint a complete picture.

Common error

Avoid using "low debt" when you mean "no debt". "Low debt" indicates some debt exists but is minimal, whereas "no debt" means there is a complete absence of debt. Make sure that if you want to express a condition in which debt doesn't exists at all you use "debt-free" instead.

Linguistic Context

The phrase "low debt" functions primarily as an adjective-noun combination to describe a state of reduced financial obligation. This is evident across Ludwig's examples, where it modifies entities like "companies", "countries", or "households" to indicate their financial health.

Expression frequency: Very common

Frequent in

News & Media

51%

Formal & Business

27%

Wiki

12%

Less common in

Science

10%

Reference

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "low debt" is a common and grammatically sound way to describe a favorable financial condition where liabilities are minimal. Ludwig AI confirms its correct usage across various contexts, particularly in news, business, and financial discussions. While the phrase implies a positive scenario, it's crucial to differentiate it from "debt-free", which indicates a complete absence of debt. When you want to use "low debt", remember that is important to be considered is it's context.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Minimal debt

Emphasizes the small amount of debt, focusing on its insignificance.

Reduced debt

Highlights the act of decreasing the amount of debt.

Limited debt

Focuses on the restricted quantity of debt.

Manageable debt

Indicates the debt is within comfortable repayment limits.

Sustainable debt level

Implies the debt can be maintained without causing financial strain.

Sound financial position

Wider term focusing on the overall positive financial health.

Healthy balance sheet

Indicates a good ratio of assets to liabilities.

Favorable debt ratio

Highlights that the debt is at an advantageous level.

Underleveraged

A more technical term indicating the debt is less than optimal.

Debt-free

Implies a complete absence of debt, which is a stronger statement than "low debt".

FAQs

How is "low debt" generally perceived in financial contexts?

Having "low debt" is generally seen as a positive indicator of financial stability and strength, suggesting that an individual, company, or country is managing its finances responsibly.

What are some alternatives to saying "low debt"?

You can use phrases like "minimal debt", "reduced debt", or "manageable debt" depending on the specific nuance you want to convey.

Is it always better to have "low debt" compared to higher debt?

While "low debt" is generally desirable, the optimal level of debt depends on the specific circumstances. Sometimes, strategic borrowing can fuel growth and increase returns, so it's essential to consider the context.

How does "low debt" affect a company's investment potential?

Companies with "low debt" are often seen as more attractive investments because they typically have more financial flexibility and are less vulnerable to economic downturns.