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Tuesday, September 4, 2012
4 Profit-Generating Financial Stocks Keeping The Debt Low
On the whole, the financial sector has not been the most reliable of choices for investors. But when each financial company is considered on an individual basis, there certainly are some that are worthy of further investigation. We ran a scan to find those that are producing solid profits while not relying heavily on debt. These two qualities generally point to experienced management that understands the necessity of tight fiscal controls. Take a look at the list of financial stocks below to begin your own analysis.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.Return on
... Read the rest at SeekingAlpha.com
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