For Immediate Release
Chicago, IL – April 29, 2019 - Stocks in this week’s article Raytheon Company RTN, Otter Tail Corp. OTTR, Amedysis, Inc. AMED, Tutor Perini Corp. TPC and DMC Global Inc. BOOM.
Buy These 5 Low-Leverage Stocks to Avoid Huge Losses
In corporate finance, leverage is the use of exogenous funds by corporations to run their operations smoothly and expand the same. While there is an option for equity financing, historically debt financing has been preferred over equity.
This is because when a company resorts to debt financing, it takes on fixed expenses in the form of interest payments for a specific time period. However, in case of equity financing, a shareholder not only becomes a partial owner of the company but develops a direct claim on the company’s future profits as well.
Yet, debt financing has its share of drawbacks. Especially, companies with large debt loads are more vulnerable during economic downturns and can even go bankrupt in the worst-case scenario. A high degree of financial leverage means high interest payments, which affect a company's bottom line.
Therefore, to safeguard one’s portfolio from notable losses, the real challenge for an investor is determining whether an organization’s debt level is sustainable. A debt-free corporation is rare to find. Historically several leverage ratios have been developed to measure the amount of debt a company bears and the debt-to-equity ratio is one of the most common ratios.
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Otter Tail Corporation (OTTR) : Free Stock Analysis Report
Tutor Perini Corporation (TPC) : Free Stock Analysis Report
Raytheon Company (RTN) : Free Stock Analysis Report
Amedisys, Inc. (AMED) : Free Stock Analysis Report
DMC Global Inc. (BOOM) : Free Stock Analysis Report
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