Debt To Asset Ratio

Debt to asset ratio determines the proportion of external financing used to purchase business assets. A debt to asset ratio of 0.6x indicates that 60% of the total assets are financed through external debt. It is calculated as:

Total Debt includes all external liabilities and can be calculated as:

Total Liabilities – Shareholder’s equity

Generally a debt to asset ratio of 0.50 is considered to be prudent. A higher ratio indicates the use of too much leverage and the company may have problems meeting their financial obligations. Companies with a high debt to asset ratio are referred to as ‘highly leveraged’ and are considered to be at a high risk financially. Hence, they may find it difficult to raise further debt or equity to finance any expansion plans. read more

Consistent Stock Trading

Investing has definitely never been easier than it is today. To be a successful trader, you need to zero in on a strategy that works specifically for you. Let’s suppose you have already paper traded and understand the technicalities of the market, how then do you stay consistent with stock trading when you are just starting out? Is there any secret to staying profitable?

Consistency in Stock Trading

The key to consistency in stock trading is really straightforward, but can be difficult to achieve. It requires you to stay true to your path. You need to remove distractions that can cause deviation from your goals and trading rules. Trading is not a get-rich quick game, at least that cannot be your mentality when starting out. Trading is a long-term commitment. To maintain your consistency, you want to control the two following factors read more