Value Investing News

Most companies use debt for a variety of reasons in their operations. It could be either short term or long-term obligations. If there’s anything the 2007-2009 financial crisis has taught us, it is that excessively leveraged companies could easily blow up after a chain of negative events. Thus it pays to know what the debt situation for a particular company you are investing in actually is.

• http://www.dividendgrowthinvestor.com/2009/10/debt-coverage-for-sustainable-dividends.html (76)