Total Debt
Select Equity |
Total Debt | = | Bonds | + | Notes |
Total Debt In A Nutshell
If you are a value investor, you want to see a company have very minimal debt or no debt at all. In combination with that, you want the company to have lots of cash on hand so they can continue operating through the slow times, providing you with value in your investments if the company can pull through and eventually grow.
Total debt is a measurement that is important in fundamental analysis. As the title states, total debt would be all debts, such as bonds, loans, and anything the company owes money on. If a company has debt, you want to see that the debt is being used wisely and that the company is not highly leveraged, meaning if they slow down in sales, it could become an issue with repayments.
Closer Look at Total Debt
You can break debt out into a few parts to understand it better. With bonds, you want to see how much they’ve financed, the rates, and when they are due to pay back on those bonds. It could be a very small amount or many, either way, you want to see how that fits into the debt picture. Secondly, you could look at notes with lenders to see when those expire or how much the monthly payments are. This would include lines of credit, as they are similar but have their slight differences. Lastly, any short term debt should be noted because that should be going away within a year. What you do not want to see if a chain of long term debt being used to pay short term debt, which could be a vicious cycle that is indicating a cash flow issue.
Debt does not play into technical analysis much, but it could still be a factor non the less. Be sure to fully understand the intention of each debt because if it is being used to expand or grow the business, look at it as an investment because that will likely return more to you. Besides that, use common sense and if the debt pattern seems fishy, it probably is. Debt can be a powerful leveraging tool in business, but if used incorrectly, could bring a business down. There are many ratios to use as well if you are looking to compare across an industry so be sure to pay close attention to those. If you still have questions, reach out to an investing community and ask for peer input, as that can help to guide your thought process.
All Fundamental Indicators
Pair Trading with Investor Education
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Investor Education position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Investor Education will appreciate offsetting losses from the drop in the long position's value.Other Consideration for investing
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |