Do you agree or disagree with this? Why or why not? What could be added to this discussion to help enhance it$?$

A debt$-$to$-$income ratio exceeding $2$:$1$ raises concerns about a company's reliance on debt to sustain its operations, potentially indicating financial vulnerability. Additionally, your suggestions for deleveraging strategies are practical and insightful. Paying down debt and selling assets to reduce liabilities can enhance financial flexibility and mitigate the risks associated with excessive leverage.

In addition to these measures, I would emphasize the importance of assessing the quality of debt. Not all debt is equal, and CFOs should differentiate between short$-$term and long$-$term debt, as well as fixed and variable interest rates. High levels of short$-$term or variable$-$rate debt can expose a company to refinancing risks and interest rate fluctuations, exacerbating financial stress during economic downturns. Therefore, CFOs should aim to optimize the debt structure by favoring longer$-$term, fixed$-$rate debt, which provides greater stability and predictability in interest payments.

Furthermore, maintaining open communication with lenders and investors is essential. CFOs should proactively engage with stakeholders to convey deleveraging strategies, address concerns about overleveraging, and demonstrate a commitment to financial prudence. By implementing these comprehensive approaches, CFOs can effectively manage overleveraging and strengthen the financial resilience of their organizations.