Comments on: Three Key Ratios For Investors

By: Financial Diary 3: Preliminary Ratio Analysis « priyashnasharma

Financial Diary 3: Preliminary Ratio Analysis « priyashnasharma — Tue, 27 Sep 2011 02:59:03 +0000

[...] Buying Value. (2011). Three Key Ratios For Investors. Retrieved from http://buyingvalue.com/2010/02/key-ratios-investors/ [...]

By: Shannon Kawane

Shannon Kawane — Sun, 04 Jul 2010 13:15:39 +0000

I like current ratio. I think payout ratio is good to evaluate sustainability and if the company has the right priorities (ie, too much payout compared to capital investment). I recommend focusing on other ratios that are closer to the source of dividends. Ratios like Price/Sales and Sales Growth Rates. A company that doesn’t know how to grow its sales will not be successful in maintaining its dividend.

By: value investor

value investor — Mon, 22 Mar 2010 04:37:26 +0000

I would agree with you. I like to see a solid dividend- otherwise it starts to look more like gambling rather than investing.

By: Anonymous

Anonymous — Thu, 18 Mar 2010 03:30:22 +0000

As an investor, why would you invest in a company that doesn’t pay dividend on a regular basis?

By: Best Dividend Stock Investing Posts of the Week – March 6, 2010

Best Dividend Stock Investing Posts of the Week – March 6, 2010 — Sat, 06 Mar 2010 11:01:52 +0000

[...] Key Ratios For [...]

By: simon

simon — Thu, 04 Mar 2010 07:30:46 +0000

1) net current price to book ratio, I like knowing what the company would be worth if it went bankrupt compared to market price.
2) debt to equity , this is interesting to me because it shows how leveraged the company is.
3) current ratio, ditto
4) average price to earnings over the last 5-10 years depending how long the business has existed. Shows that the company can be profitable.

By: Matt @ Dividend Monk

Matt @ Dividend Monk — Wed, 03 Mar 2010 02:19:26 +0000

I like your list. My third three would likely all be the same as yours: dividend yield, payout ratio, and growth rate.

I’d probably use one of two different metrics in place of current ratio, though. Likely I’d replace it with LT Debt/Equity for large companies and Insider Ownership for small companies.

By: Financial Uproar

Financial Uproar — Mon, 01 Mar 2010 07:10:28 +0000

Mine would be:

1) Current Ratio- Ditto to your comments

2) Price to Book- I like buying a dollar for less than a dollar. I’m cheap like that.

3) Debt to Equity- I try to avoid companies with lots of debt

4) Dividend Yield- While a dividend isn’t really that important to me if I like a company, I do like to get paid. Even if the company is about to be cut.

By: Weekly Links: February 28, 2010 | Dividends Value

Weekly Links: February 28, 2010 | Dividends Value — Sun, 28 Feb 2010 11:32:14 +0000

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