Current Ratio and Debt to Equity Ratios

-
Instead of looking at how the market price of a stock is going up and down, a better indicator for your investment risk is how much debt a company has.


Important Keywords from this lesson:
  • Debt to Equity ratio tell you how much debt there is relative to net asset (typically <0.5 is acceptable).
  • Current Ratio tell you the inflow and outflow of cash in the next 12 months, and if there is likely to be needs for new debts. This ratio is not normally shown on websites but is simply the Current Asset (asset likely to be sold in the next 12 months) / Current Liability (debt that has to be repaid in the next 12 months). Typically current ratio > 1.5 is a good sign,

Comments

Post a Comment

Popular posts from this blog

IWEB trading platform, service review

-
Image
I had a frustrating experience today with my UK trading platform, IWEB. Upon logging in this morning, I was startled to see a message that my account was restricted and to call a provided number. I was perplexed about what could have triggered this. I called customer service, who speculated that an expired debit card on file may be the issue. After updating my details, I was told access would resume shortly. However, I remained unable to access my account the entire day, which was aggravating. While I understand technical problems occur, clearer communication and urgency from IWEB would have been appreciated in resolving this issue faster. IWEB is one of the ISA providers and shares dealing platforms in the UK, part of Lloyds Banking Group. I have been with them for several years. Customer service is usually friendly, and there is a web-chat service which I like. They offer the most competitive 'cost per trade' without a minimum number of trades per month (that I know of), and
Read more

What Gaming Taught Me About Life

-
Image
    For all the young gamer out there Lately, after completing my professional qualification, I’ve had more time to pursue my hobbies and gaming has been one of my favorites. I find it both stimulating and relaxing to experience different worlds and challenges. I also believe that gaming in moderation has some real-life benefits. For example, it can teach problem-solving skills, teamwork, and creativity. These are all skills that can be applied to other areas of life, such as work and school. I believe that successful gamers can transfer these gaming skills and mindsets to other areas of life. Follow my channel, I need subscribers! In Games, the Objective (Quests) Are Well Defined If you play video games, you probably know what objectives and side quests are. They are the goals that guide you throughout the game in the game world. In his book “Winners and how they succeed”, Alistair Campbell explains how having a clear objective is the key to success in any field. As a gamer, you would
Read more

Review: Dodl - AJ Bell's User-Friendly Investment App

-
Image
For UK-based Investors #Dodl #AJBell #investing #trading  What is Dodl? Dodl, the user-friendly investment app, is brought to you by AJ Bell, a prominent name in the UK's investment landscape. Aimed at demystifying the world of investing, Dodl offers a straightforward and accessible platform for individuals looking to take control of their financial future. Low-Cost Investing Dodl boasts an affordable approach with a minimal 0.15% account charge, starting at just £1 per month. This low-cost structure makes investing within reach for individuals who may be new to the world of finance. Trustworthy Platform: A Part of AJ Bell Being a part of AJ Bell adds a layer of trust to Dodl. AJ Bell has been recognized as a Which?-recommended investment platform for five consecutive years, earning the confidence of over 490,000 investors. App-Based Convenience Dodl takes the hassle out of investing with its all-encompassing app. Offering a streamlined range of accounts and investments, Dodl makes
Read more