Before investing in a company, how can u find out if the that company has any huge debts??

Question

Before investing in a company, how can u find out if the that company has any huge debts??

Answer 1

http://finance.yahoo.com/

enter stock symbol

Look at Balance Sheet.

Example:

http://finance.yahoo.com/q/bs?s=T

Answer 2

Bernardo,

Public companies are required to file quarterly and annual reports that disclose their financial status. Looking at the income statement and balance sheet will show the amount of interest a company is paying in aggregate and the amount of any outstanding obligations (debt, accounts payable, etc.). Footnotes should describe the specific terms of any large debt instruments (interest rate, length of term, other provisions) the company is using. You can search these filings at the Edgar Web site. (See link below.)

Private companies are another matter, as they are not required to make their finances publicly known. If you are considering investing in a private business, I would request audited financial statements and bank statements. You should also check if the company has a bond rating from Moody's, Standard & Poor, etc.