2min chapter

The Investing for Beginners Podcast - Your Path to Financial Freedom cover image

Bird's Eye View of the Balance Sheet

The Investing for Beginners Podcast - Your Path to Financial Freedom

CHAPTER

How to Compare a Company's Total Liabilities to Equity

A company's total liabilities and how is that compared to their equity? You divide the liabilities by the equity and the higher the number, the worse. And so you get to be in general rules, anything below a one is really good. But then you also have financials and real estate investment trusts that generally run those much, much higher.

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