This article is about Balance Sheet metrics.
They are including metrics, which show proportions and structure of the company. Structure of the company include own capital, assets and loans. It can tell also about financial stability of the company too.
Equity-to-Asset — relation equities to assets. Show using own resources in producing of the products.
Cash-To-Debt — relation cash to debt. If more — that is better. If this indicator is higher then 1, that means, that company can pay her debts more then 1 time. Indicate financial strengh of the company.
Debt-to-EBITDA — relation debt to operational income. Helping metric.
Debt-to-Equity — relation debt to own capital. Critical meaning — 0,4. This meaning can depend from sector of the company and current expectations and situation of the company.
Interest Coverage — relation operating income to interest payments. Indicates financial strengh. If higher — that is better.
All of them are important in the complex analysis of the company and her financial stability. If company has good operational results, but not good financial stability and dangerous structure with high ammount of debts, she will not be good candidate for investing.
They are including metrics, which show proportions and structure of the company. Structure of the company include own capital, assets and loans. It can tell also about financial stability of the company too.
Equity-to-Asset — relation equities to assets. Show using own resources in producing of the products.
Cash-To-Debt — relation cash to debt. If more — that is better. If this indicator is higher then 1, that means, that company can pay her debts more then 1 time. Indicate financial strengh of the company.
Debt-to-EBITDA — relation debt to operational income. Helping metric.
Debt-to-Equity — relation debt to own capital. Critical meaning — 0,4. This meaning can depend from sector of the company and current expectations and situation of the company.
Interest Coverage — relation operating income to interest payments. Indicates financial strengh. If higher — that is better.
All of them are important in the complex analysis of the company and her financial stability. If company has good operational results, but not good financial stability and dangerous structure with high ammount of debts, she will not be good candidate for investing.
