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How do i quickly find a companys net debt?

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  • agsnu
    agsnu Posts: 1,457 Forumite
    Lokolo wrote: »
    Then you want to look at NET surely as thats the final profit they are making.

    I'd contend that you want to look at all the measures and learn to use them as different tools to build up a picture of the company's situation. When you're looking for investment opportunities you probably wouldn't want to just focus on net profit - you're not investing based on how much money the company made after tax (and was therefore available to be paid out in dividends) last year, you're investing based on how much you think they'll make in the future. You might want to look at EBITDA. You might want to look at operating profit. You might want to look at gross profit. You might want to look at the balance sheet.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    agsnu wrote: »
    I'd contend that you want to look at all the measures and learn to use them as different tools to build up a picture of the company's situation. When you're looking for investment opportunities you probably wouldn't want to just focus on net profit - you're not investing based on how much money the company made after tax (and was therefore available to be paid out in dividends) last year, you're investing based on how much you think they'll make in the future. You might want to look at EBITDA. You might want to look at operating profit. You might want to look at gross profit. You might want to look at the balance sheet.

    I didn't say just look at net profit if you read the rest of the post. ;)
  • Is this connected to the naked trader guy, he says net debt should not be more then 3 times net profit ?


    try iii and digitallook and I guess net debt is listed in the last results released which would be under rns which is basically that lse link



    F3 to highlight a word or try ctrl F and type debt to save your eyesight from all those numbers :p the first two I mention give graphs on some of the fundamentals also which makes it easier
  • i1189
    i1189 Posts: 200 Forumite
    I'd be concerned about investing in any company with net debt - it means that the reserves will be negative so they will legally not be able to pay dividends, plus the company is badly managed enough to get in a net debt situation in the first place.
  • Arent the majority of companies in net debt hence the problems when credit is not available. Doesnt mean they arent profitable, debt is often needed to grow quickly or oil companies would never take off for example
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