When a company is in debt, the company must pay a fixed amount of interest on a regular basis. Thus, when the operating conditions are good, the return on equity of the operation is much higher than the interest rate of the loan, and the borrowing operation can bring a higher profit to the company, and the shareholders of this type of company can also receive a higher remuneration. But if working conditions are bad or even lose money, the company still has to pay this interest. As a result, the company's profits fell even more, and shareholders suffered as a result.