Hi we should look for companies with debt/equity less than 0.5
i realise by your definition you only look at long term + short term debt..
but isnt the debt to equity = total liabilities/ total shareholder equity?
Hi Guo An,
There is many definition on debt to equity. It is depend on how you see it. Personally, we take debt because the lender can bring you to court if you failed on payment. Whereas, if the company owe their supplier money, most of the time the supplier will just write off as bad debt.
I would like to ask whether I should include acquisitions of a company as capital expenditure of the organisation. I understand that normally Capex include only ‘plant, property, equipment.’ Thank you.
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