Debt-To-Equity Ratio: What it is and How to Calculate it
If you plan to invest in a company with more debt, ensure that you have a diversified investment portfolio and restrict a smaller percentage of your portfolio to these high-risk stocks. Many companies leverage a large amount of debt to create strong, long-term growth—and investors who buy in early could potentially reap high, above-the-market returns. Debt isn’t always a bad thing—and, in some cases, it’s the only feasible way for a business to grow. If you’re thinking about investing in a company with a higher debt-to-equity ratio, make sure that…
Read More