Sep 8, 2019
Companies can issue debt via bonds to raise capital. But how can you tell whether they have too much debt issued? What are some key ratios to look at to evaluate for yourself? Derek Moore explains how interest rates effect the cost of capital (WACC) and how to see when a stocks debt is maturing and what interest rates they must pay. And what are Zombie Companies?
Interest Coverage Ratios
Debt Ratio (Total Debt/Total Assets)
Debit to Equity (Total Debt/Stockholders Equity)
WACC Weighted Average Cost of Capital
What happens when bonds come due for companies?
What are Zombie Companies?
Where to find list of a company’s outstanding debt?
How low interest rates can help companies
Mentioned in this Episode:
Netflix list of it’s outstanding bonds (page 51) on annual report https://www.sec.gov/Archives/edgar/data/1065280/000106528018000069/q4nflx201710k.htm
Book: Broken Pie Chart https://amzn.to/31oy1hE
Razor Wealth Management www.razorwealth.com