What To Look Out For When Buying Stocks «ESSENTIAL • MANUAL»

: A ratio above 1.5 generally indicates the company can meet its short-term debt obligations.

: A lower ratio suggests the company is less reliant on borrowing and less likely to struggle during economic downturns. Cash Flow Quality :

: The percentage of revenue that remains as profit after all expenses. A higher margin provides a buffer against rising operating costs. Liquidity and Debt :