BRWC is TOXIC DEBT FREE, NO DILUTION The Payoff: I
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So what’s to learn here — beyond that some folks like me have way too much time on their hands to pore over financials? Well, simply put the less debt a company has the more secure it is in its future.
No shocker there. A company without debt is a company that is safely profitable and enjoying comfortable cash flows. Such a stock also can use its cash to make acquisitions, invest in product development or expansion, buy back shares or pay dividends to shareholders.
When looking for stocks to buy, investors typically look over revenue and profits pretty carefully. But if this “Debt-Free Index” is any indicator, the level of borrowing a company does is also a fairly important figure to track.