What is considered a favorable price to sales ratio?

July 9, 2024 No Comments

A: Price to sales (P/S) ratios between 1 and 2 are generally considered good, and ratios less than 1 are considered excellent. As with all equity valuation metrics, average P/S ratios can vary significantly between industries. It is important to view a company’s P/S ratio

What is considered a good net debt-to-equity ratio?

June 30, 2024 No Comments

A: The optimal debt to equity (D/E) ratio varies widely by industry, but the general consensus is that it should not be above 2. While some very large companies in fixed asset-heavy industries may have ratios higher than 2, these are the exception rather than

What is considered a good net debt-to-equity ratio?

July 7, 2024 No Comments

What is considered a good net debt-to-equity ratio?

July 9, 2024 No Comments

What is considered a healthy EV/EBITDA?

July 9, 2024 No Comments

A: The enterprise-value-to-EBITDA ratio varies by industry. However, the EV/EBITDA for the S&P 500 has typically averaged from 11 to 14 over the last few years. As of the end of 2017, the average EV/EBITDA for the S&P was 12.75. As a general guideline, an EV/EBITDA value below 10 is commonly interpreted

What is considered a healthy operating profit margin?

June 30, 2024 No Comments

A: Typically, an operating profit margin of a company should be compared to its industry or a benchmark index like the S&P 500. For example, the average operating profit margin for the S&P was roughly 11% for 2017. A company that has an operating profit margin higher than

What is considered a healthy operating profit margin?

July 7, 2024 No Comments

What is considered a high debt-to-equity ratio and what does it say about the company?

June 30, 2024 No Comments

A: The debt-to-equity ratio is a measure of a company’s financial leverage that relates the amount of a firms’ debt financing to the amount of equity financing. It is calculated by dividing a firm’s total liabilities by total shareholders’ equity. What is considered a “high”

What is considered a high debt-to-equity ratio and what does it say about the company?

July 7, 2024 No Comments

What is considered a high debt-to-equity ratio and what does it say about the company?

July 9, 2024 No Comments

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