Warren Buffett once noted that volatility is not synonymous with risk, an assertion that becomes deeply relevant when examining a company’s financial stability, particularly in relation to its held debt. Debt can propel a business towards growth, but this turns risky when the company faces difficulty in repaying it, potentially leading to bankruptcy. While less common, it is noted that some companies are coerced by lenders into augmenting their capital at an unfavorable price, thus watering down the value for shareholders. However, debt is not necessarily detrimental as it can represent inexpensive capital when it supplants dilution in a company that can reinvest the proceeds at high returns. The risk associated with debt essentially lies in how it is employed within the company’s operations.