3.Debt
Debt to equity
This is an important ratio and it will determine if you are evaluating a highly gear company. Companies with high borrowing are subjected to higher risk than companies with no or low debt. Investors would look at this ratio to determine the company's ability to repay its debt It measures the total liabilities to total shareholder equity. A higher ratio could mean the company is higher financed by debt Ideal Range: 2.0 or less
Debt to Net Profit
Debt to Net Profit=Total Debt/Net Profit It measures the company's debt to its net profit Ideal range:3.0 or less
Debt to Cash Flow
Debt to Cash Flow=Total Debt/Operating Cash Flow It measures the company's debt to its operating cash flow.It is an indication of the company's ability to cover its total debt with its annual operating cash flow Ideal range: 3.0 or less Interest Cover...
