Question

Where can natalie find out whether biscuits has outstanding debt? how can natalie determine whether biscuits would be able to meet its interest and debt payments on any debts it has?

Answer 1

It's recommended for her to go over the annual report and playing very close attention to the auditor's remarks, then to compute the debt to total assets ratio so she can measure the long-term debt-paying ability. By doing this she'll discover if they have a high percentage, leading that this company is not safe to invest with.