Reasons for high asset-liability ratio of property companies

1, the expansion of asset scale and the expansion of enterprise asset scale are one of the main reasons for the increase of asset-liability ratio. When enterprises expand production scale, increase production lines and open up new markets, they need to invest more funds, which are often obtained by borrowing.

2. The increase in liabilities and corporate liabilities is also one of the reasons for the increase in asset-liability ratio. When enterprises need to borrow money, issue bonds and other financing methods, liabilities will increase.