RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:ts9222 Now you are making a fool of yourself. You ignore basic accounting principles.
Assets are on the other side of balance sheet. They are either financed by debt or by equity. So if a company has higher debt it MUST have higher assets!
As it is the case with EDV the finance almost half of their assets with debt!!
Then i can say LSG is a bad investment because it has such a low Total Assets to equity ratio lol.
Dude you are a fool. A low ratio in case is a good thing not a bad thing. Lets do the math: LSG = 633/487=1.3 EDV = 966/494=1.95
What do these numbers mean? I put it as simple as possible so even you understand it!
For every $ 10 million in equity LSG is using $ 3 million of debt. And for every $ 10 million in equity EDV is using $ 9.5 million of debt. Does not sound very healthy. Your total assets to equity ratio is nothing else than a simple leverage ratio.
And this kind of bear market for commodities every one is preferring low leverage ratios. Have you ever thought about why EDV underperformed and LSG outperformed?
It is a fact that EDV has a high debt level compared to LSG. Moreover LSG has convertible bonds as long term debt which could also be converted into equity.
Past 3Y Performance: EDV even underperforming HUI
