Knowing how to analyze a balance sheet is a must to make good investment decisions. You want to invest in companies that are in good financial shape. Read how to read a balance sheet like an expert here.
After reading your article, I showed it to my sister, who has been in accounting for a long time, and she was pleasantly surprised at how easily you were able to describe complex terms "In child language". My sister and I look forward to your next articles!
The question I would like to ask you is: together with the interest coverage ratio, would you also look at the current, and more importantly, the quick ratios? Do you consider them equally important for your analysis?
In my opinion, covering the interest on the debt is important but the business must be able to meet its short term obligations like accounts payable for example. I like to see quick ratios of at least 1, and current ratios above 1.5.
Thanks for share your knowledge
I apreciate
By the way, very useful text!!
Doesn’t the interest coverage ratio comes from the income statement??
As usual, great info and to the point!
Great overview Compounding Quality!
After reading your article, I showed it to my sister, who has been in accounting for a long time, and she was pleasantly surprised at how easily you were able to describe complex terms "In child language". My sister and I look forward to your next articles!
Thank you for another great post!
The question I would like to ask you is: together with the interest coverage ratio, would you also look at the current, and more importantly, the quick ratios? Do you consider them equally important for your analysis?
In my opinion, covering the interest on the debt is important but the business must be able to meet its short term obligations like accounts payable for example. I like to see quick ratios of at least 1, and current ratios above 1.5.
Thank you!
Thanks sir
Brief, insightful, love this!
Excellent! I really enjoy reading your articles.
Great article - I’ll certainly be using those ratios when next looking at company’s! Joe.
Very well explained. Thanks!
Very nice. Loved it 👌👌
Yeah, for example what metrics to use for comparing peers in different industries.