I read an article online . That was the title of the article , " GET RID OF DUDS IN YOUR PORTFOLIO "
I'm trying to figure out if its good information or not
It says to ---Calculate the size of a company’s net debt, and then divide that figure by the company’s annual revenue… to produce a simple ratio: --- Net Debt Divided by Trailing 12-Month Revenues ---Generally speaking, the higher the ratio, the worse a stock is likely to perform over the following five years
Investopedia says to calculate net debt. add short term debt + long term debt then subtract cash and cash equivalent.
Is anyone using this successfully ?
I pulled up a couple of income stamen's online and tried to do that but i'm a total amateur , so i don't know if i'm using the correct numbers.. Or maybe im just wasting my time .
Any comments will be appreciated.