When you start investing, there are a lot of things that can trip you up. On the plus side, thanks to the internet and books written by highly skilled investors, there is also very little that can?t be learned. Here is one thing every beginner needs to know about company debt:
Its Size
This is simply how much debt the company has; for example, Woolworths Limited (ASX:WOW) reported a total of $3.26 billion in borrowings at its half yearly report. It also has $1.42 billion in cash, which might lead the company to report ?$1.84 billion in net debt? (borrowings minus cash)
When you start investing, there are a lot of things that can trip you up. On the plus side, thanks to the internet and books written by highly skilled investors, …
Read the full article at: http://www.fool.com.au/2017/04/18/1-crucial-thing-every-investor-needs-to-know-about-debt/