A company's Property, Manufacturing Plant, and Equipment are listed as assets that depreciate on the balance sheet. Companies with a Durable Competitive Advantage don't upgrade their Manufacturing Plant and Equipment often. And they do not finance its upgrade with Debt. The value of the company's Property/Plant/Equipment must be greater than the Total Debt. It should also be increasing historically with Net Income. If Property/Plant/Equipment is increasing with Net Income, the company is growing. They are making more of their products and people are buying them.
Equations
Check if Property/Plant/Equipment is greater than Total Debt:
Check if Property/Plant/Equipment is increasing with Net Income: and | My Financial Analysis of Stocks
Showing posts 1 - 10 of 61.
View more »
|