Top 5 debt-free penny stocks below Rs 20; check if you own any!

Now, let's talk about Penny stocks under below Rs 20 and enjoys a debt free status too

Picking the right company to invest in can be tricky. As an investor, you want a company that gives you good profits without too much risk. Even experienced investors think about many things before choosing a company to invest in. One important thing they consider is called "ratio analysis techniques." These techniques help them understand a company's money situation. When they know how well a company is doing financially, they can make better decisions.

Imagine you're deciding whether to lend money to a friend. You want to know if they can pay you back. Similarly, investors want to know if a company can handle its debts. One useful tool for this is the "debt to equity ratio." This ratio tells us how much debt a company has compared to the money its owners put in. If a company has a lot of debt compared to what the owners have invested, it could be risky. This ratio can help us see if the company relies more on borrowing money or on the money its owners have invested.

To calculate the debt-to-equity ratio, we use this simple formula:

Debt-to-Equity Ratio = Total Debt / Total Shareholder’s Equity

Now, let's talk about Penny Stocks under below Rs 20 and enjoys a debt free status too

So, when you're thinking about investing your money, pay attention to how much debt a company has and how well it's using its money to make more. This way, you can make smart choices like the pros!

Disclaimer: The article is for informational purposes only and not an investment advice.