By Sol Palha:
Traders should not base their investment decision on yield alone but examine some of the key metrics described below. In most cases, higher yields are associated with a higher degree of risk. It is okay to deploy some capital into riskier plays but betting the house is asking for trouble.
Debt to Equity Ratio is found by dividing the company’s total amount of long-term debt (debts with interest rates that have a maturity longer than one year) by the total amount of equity. A debt to equity ratio of 0.5 tells us that the company is using 50 cents of liabilities in addition to each $1 dollar of shareholders equity in the business. There is no fixed ideal number as it depends on the industry the company is in. However, in general a ratio under 1 is acceptable and ideally it should be in the 0.5-0.6 ranges.
Current Ratio is

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