6 Basic Materials Stocks Raking In Profits Without Amassing Debt

Interested in gaining exposure to basic materials companies? Do you prefer companies with strong profits? Do you look for companies with low debt? Do you prefer companies that can manage their long-term debt? You might like what we've put in our list. Return on Equity (ROE) is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture of how the company is generating these returns and helps identify parts of the company that may be underperforming. The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors
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