dividend safety tab
Under the Dividend Safety tab, how are Net Long Term Debt / Total Assets and Net Long Term Debt / EBITDA calculated. I'm trying to understand why some companies can have negative values.
Under the Dividend Safety tab, how are Net Long Term Debt / Total Assets and Net Long Term Debt / EBITDA calculated. I'm trying to understand why some companies can have negative values.
Hi, thanks for responding; take NKE for example:
Payout Ratio 37.20%
Cash Dividend Payout Ratio (TTM) 27.23%
Net Long Term Debt / Total Assets -2.54%
Net Long Term Debt / EBITDA -10.49%
What causes the two values to be negative. I guess I'm wondering how Net Long Term Debt is calculated, since it seems to affect both.
In general, companies with a low or negative net debt should be less risky than companies with a high ratio. A negative value indicates the company has more cash than debt. You might want to read this:
https://www.investopedia.com/terms/n/netdebt.asp
Thanks for the question. Which companies are you looking at?