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Debt vs growth: What investors must check before buying stocks

Stock prices move on earnings, growth stories and sentiment. But long-term wealth creation depends on something far less discussed: the balance sheet. In particular, it is important to consider how much debt a company carries and whether it can service that debt comfortably.

Debt vs growth: What investors must check before buying stocks

Credit: Livemint

Key Highlights

  • History shows that companies with weak balance sheets tend to underperform sharply during economic slowdowns, even if their business models look attractive.
  • This is why serious investors track debt ratios as closely as profits.
  • Today, investors can track debt, debt-to-equity, interest coverage and multi-year balance sheet trends for every listed company on Finology Ticker, where data is updated daily and presented in a comparable format.
  • During good times, debt often looks harmless.
  • Sales grow, profits expand and interest costs appear manageable.
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Sources

  1. Debt vs growth: What investors must check before buying stocks

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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