Analysis

Basic filters🔗

Debt & Liabilities🔗

Long term liabilities:

• Total Liabilities / Equity < 0.5
• Debt / Equity < 0.3
• Interest Coverage >= 10 (Operating Income / Interest Expense)

Current liabilities:

• Quick ratio > 1

Book value🔗

• P/TB < 2.5
  • Exception high tech companies (Facebook, Google, etc): P/TB < 3.5

10-K checks🔗

• Unresolved staff comments (FAFD, p.218) - ensure it's blank
• Legal Proceedings (FAFD, p.218) - read the section; search key words like Litigation
• Read auditor's opinion (FAFD, p.231) - read "Report of Independent Registered Public Accounting Firm" section. Pay attention to words like "concern"
• Be aware of "pension liabilities" (FAFD, p.224) - keywords: pension, retirement