Sentences with phrase «if debt to equity ratio»

But if the debt to equity ratio is quite high, it may signal that the company is already carrying too much debt that may make it unable to pay its obligations to its creditors or lenders.

You should only invest if the debt to equity ratio is low.

Not exact matches

If the same company has the bond outstanding and only $ 1 million in equity, then the debt - to - equity ratio is 10 (10/1 = 10).

Alternatively, if the company has the $ 10 million bond outstanding and $ 20 million in equity, giving a debt - to - equity ratio of 0.5, investors can feel a little bit more comfortable.

They all have debt to equity ratios of less than 50 %, a good thing if a recession does occur.

If one compares WLL (Jan 11 close — $ 47.55) & KOG (Jan 11 close — $ 9.20) on the parameters mentioned in the table below, WLL appears to be an obvious choice due to its lower valuation and debt / equity ratio.

If you're a value investor, you're looking for stocks with low debt - to - equity ratios, low P / E ratios, depressed prices, and positive future earnings forecasts and prospects.

If you're assessing potential investment opportunities, it's worth taking a look at a company's debt - to - equity ratio.

«As interest rates increase, if they go too high, the higher debt - to - equity ratios and leverage will have a negative effect on cash flows.»

I know if by debt to income ratio is high I may get a higher interest rate on the home equity loan or the bank may not give me the loan at all.

If it's really the case that 2 / 3rds of the cheapest price to book stocks go under then screening out those bankruptcy candidates by simply insisting on a tiny debt to equity ratio would have a powerful effect on your portfolio.

Your overall debt - to - income ratio should be no more than 41 to 43 percent of your gross monthly income for most lenders; so if you're still paying for a home equity loan, a car loan, credit card debt or other debt in retirement, it can be tough to meet that hurdle without including the income earned on your retirement investments.

If you have extremely high debt - to - income ratio and there is not much of equity in the property, you will not qualify for an equity loan to be able to consolidate your bills.

And it really does not matter if you employ P / E ratios, P / S ratios, market - cap - to - GDP, Tobin's Q, household equity - to - GDP, margin debt... you name it.

Of course, other considerations also come into play to determine if a given debt to equity ratio is healthy and sustainable.

However, if a company is adding debt to pay dividends (for example), there is no collateral and I will worry about the sustainability of this business practice regardless of the current debt / equity ratio.

It also matters if you're looking to refinance your investment property or borrow against it with a home equity line of credit, as lenders will consider your debt - to - equity ratio as a measure of creditworthiness.

If the same company has the bond outstanding and only $ 1 million in equity, then the debt - to - equity ratio is 10 (10/1 = 10).

If you think in terms of opportunity costs, it seems irrational to adopt any investing rule unconnected to whether the position is undervalued and safe per traditional Graham / Buffett value metrics like PE, price to cash flow, debt to equity, current ratio, and DCF analysis.

For our next filters, if a company is not in the utility sector, the payout ratio for the last 12 months had to be less than or equal to 50 % and the company's long - term debt - to - equity ratio must be 50 % or lower.

Your LTV (or debt to equity) ratio on the property stays in tact because the equity from your real property is NOT being used to fund the loan, thereby preserving flexibility if the downturn in the market occurs and the property would need to be sold.

Given you built equity in your first deal if you use the same bank you may not need to refinance given your portfolio debt to equity ratio.

Do you have enough equity in the deal that you can meet your lender's loan - to - value and / or the debt coverage ratio if we experience a 200 basis point increase in the Treasury and you get a vacancy?