Friday, May 18, 2012

4 Growing Consumer Stocks Keeping Down The Debt


Interested in consumer companies? Interested in companies with minimal debt? Do you prefer companies that can manage their long term debt? Do you prefer stocks that can bring in profits over the long term? Here are some interesting ideas to get you started. The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble. The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and
... Read the rest at SeekingAlpha.com

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