IFB267: How to Measure Liqudity in Investments

Welcome to the Investing for Beginners podcast! Today’s episode is a product borne from a large project we’re doing the past days which involves metrics and numbers. The topic is about how investors, beginners especially of course, can avoid putting their money in risky investments. So listen on as we talk about the different metrics that are really helpful in determining if a business can pay its dues.

Timestamps of the episode:

-How could beginners avoid risky investments? Is there such a way? [02:33]

-Talking about the interest coverage ratio and what this useful metric mean. [05:19]

-Current ratio and why it is such an important one to measure a business’ liquidity. [11:00]

-Different ways companies service their debts in the short term. [19:27]

-Discussing the debt-to-equity ratio and how this metric best reflect a business’ long term solvency. [25:12]

-A good reminder on picking businesses and capital allocation of the management. [27:29]

Note: Timestamps may differ and are approximate, depending on your podcast player.

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You can find the transcript of today’s show below:

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