Consider the company's debt levels from "summary" of Buffettology by Mary Buffett,David Clark
When evaluating a company as a potential investment, it is crucial to take into consideration the amount of debt that the company carries on its balance sheet. Debt can be a double-edged sword for a company. On one hand, debt can be a useful tool to finance growth and expansion. On the other hand, too much debt can be a burden that weighs down a company's profitability and ability to weather economic downturns. A company's debt levels can be assessed by looking at its debt-to-equity ratio, which is calculated by dividing the total liabilities of the company by its shareholders' equity. A high debt-to-equity ratio indicates that a company relies heavily on debt to finance its operations, which may pose a risk if the company struggles to generate enough cash flow to service its debt obligations. Warren ...
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