Thursday, May 17, 2012

4 Services Stocks With Plenty Of Cash And Little Debt


Interested in gaining exposure to services companies? Interested in companies with high liquidity? Do you look for companies with low debt? Are you after companies that have manageable long term debt? For ideas on how to evaluate this, we ran a screen.The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can
... Read the rest at SeekingAlpha.com

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