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Luke's avatar

I’m confused. You mentioned that the lower is debt-to-equity ratio the better. But at the same time you say that preferred values are β€œno lower than 0.5 - ideally 1+”. If the ratio is 1+ it would mean the company’s debt is greater or equal to its shareholder equity. Is that a typo?

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Invest In Assets πŸ“ˆ's avatar

Yes, that is a typo, thanks for letting me know, Luke!

What I meant to write is that the debt to equity should ideally be below 1. This will of course depend on the business, but as a general rule of thumb this applies.

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Luke's avatar

I thought so. Thank you for clarification and also for amazing content!

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Invest In Assets πŸ“ˆ's avatar

Thank you, Luke! Means alot :)

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P K's avatar

Thank you for yet another great article!

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Invest In Assets πŸ“ˆ's avatar

Thank you so much P K. Your comments mean a lot!

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