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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: steven d. zapf who wrote (13411)	1/31/1999 3:15:00 PM
From: Razorbak	Respond to of 29382

<<How much long term debt is too much?>> When it's greater than total assets. Sorry, couldn't resist. <vbg> Welcome aboard. ;) Razor

To: steven d. zapf who wrote (13411)	1/31/1999 4:23:00 PM
From: Sergio H	Read Replies (2) \| Respond to of 29382

<How much long term debt is too much? Do you compare it with something else to arrive at a ratio?> There is no set formula because Companies in different sectors typically carry more debt than Companies in other sectors. An electric utility probably will have more debt than a widget manufacturing Co. As an introduction and until you become more familiar with accetable ratios,compare different stocks of relative size within the same sector using the debt to equity ratio found in Yahoo's stock profile for each stock, then read the 10q/10k of the stock that you are interested in to learn the details as to how the Co. is addressing the debt issue. Amigo Sergio