Red Flag: High Interest Payments Compared to Earnings

This identifies stocks which have low interest coverage, with interest payments that are high compared to their earnings. This indicates that these companies may have trouble meeting their interest payments. Stocks with an interest coverage ratio of 1.5 or below are considered in the danger zone.

Discussion

Red Flag: High Interest Payments Compared to Earnings
This identifies stocks which have low interest coverage, with interest payments that are high compared to their earnings. This indicates that these companies may have trouble meeting their interest payments.