It's the basic question when investing in a stock: is it on the way up or will it go down? To answer this question, Wall Street has developed numerous ways of attempting to predict what will happen, estimating various attributes tied to stock performance in order to determine what the future holds for a company's valuation.
Throughout the financial crisis, large debt loads weighed on company balance sheets and had serious implications for the firms that let their borrowing get out of control. Other companies, however, have a history of operating with low debt levels, and many choose to issue no debt at all. Instead of debt, these companies hold cash and liquid investments in order to make acquisitions and fund other investments.
It's the basic question when investing in a stock: is it on the way up or will it go down? To answer this question, Wall Street has developed numerous ways of attempting to predict what will happen, estimating various attributes tied to stock performance in order to determine what the future holds for a company's valuation.