2007-06-03 00:17:59 · 3 answers · asked by Grim R 1 in Business & Finance ➔ Investing
Low debt is good, there fore debt/eq should be less than 1.0. However, this is not always the case, for example, with banks who carry lots of debt on the books. Always compare to the industry average when considering ratios in your analysis.
///
2007-06-03 01:53:41 · answer #1 · answered by SWH 6 · 0⤊ 0⤋
comparing industry averages is a good way to look at those metrics. additionally a company with higher than average debt that has either increasing earnings and or high amounts of cash can be viewed as better than another company with the same ratios of debt and gross profit/rev
2007-06-03 02:06:43 · answer #2 · answered by R B 4 · 0⤊ 0⤋
Debt/Equity you would probabvly want lower than the industry average and Gross Profit/Revenues higher than the industry average.
2007-06-03 00:32:06 · answer #3 · answered by jeff410 7 · 0⤊ 0⤋