Dividend Aristocrats: Yesterday’s Concept
June 16, 2018
Beware of Apple’s valuation. Why most p/e-ratios are badly calculated.
July 12, 2018
Whenever a promising stock tumbles because of bad news, we ask the same question over and over again. Shall we buy the stock or better avoid it? To answer this question, we should consider the financial strength of the company, too. Financially strong companies endure crises much better than companies highly indebted.
To help you to assess the financial strength, DividendStocks.Cash introduced new metrics. These metrics show the total debt (total debt / total assets) and give you the number of years, the company needed to pay back its total debt based on the current free cash-flow minus dividends payed.
New metrics showing the total debt and the company’s ability to pay back its debt
The new debt chart not only shows debt to assets, yet strips down the total assets into its most important parts:
- Goodwill as an asset with potential uncertainty
- Cash and equivalents including marketable securities as an asset with highest certainty
- All others assets remaining
Even more, the amortization power of the company is show. This is the amount of money the company could use to redeem its debt based on its cash-flow.
The new debt chart. The most important points at a glance
More details can be found in the introduction.
