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S Spring
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For same-industry company comparisons there are P/E ratios, P/S ratios, gross profit margins, and net profit margins. And there is the debt-to-equity ratio.

Now the P/S ratio might be of interest if a company has no net income due to one-time charges. But a high gross-margin will increase the P/S ratio or a low gross-margin will reduce the P/S ratio such that margins give better information about the company.

A low debt-to-equity ratio can indicate an established company not at risk of bankruptcy or can indicated a development-stage company that is well funded.

For same-industry company comparisons there are P/E ratios, P/S ratios, gross profit margins, and net profit margins. And there is the debt-to-equity ratio.

Now the P/S ratio might be of interest if a company has no net income due to one-time charges. But a high gross-margin will increase the P/S ratio or a low gross-margin will reduce the P/S ratio such that margins give better information about the company.

For same-industry company comparisons there are P/E ratios, P/S ratios, gross profit margins, and net profit margins. And there is the debt-to-equity ratio.

Now the P/S ratio might be of interest if a company has no net income due to one-time charges. But a high gross-margin will increase the P/S ratio or a low gross-margin will reduce the P/S ratio such that margins give better information about the company.

A low debt-to-equity ratio can indicate an established company not at risk of bankruptcy or can indicated a development-stage company that is well funded.

Source Link
S Spring
  • 3.6k
  • 1
  • 7
  • 6

For same-industry company comparisons there are P/E ratios, P/S ratios, gross profit margins, and net profit margins. And there is the debt-to-equity ratio.

Now the P/S ratio might be of interest if a company has no net income due to one-time charges. But a high gross-margin will increase the P/S ratio or a low gross-margin will reduce the P/S ratio such that margins give better information about the company.