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Re: sman154 post# 6926

Wednesday, 07/30/2014 2:59:38 PM

Wednesday, July 30, 2014 2:59:38 PM

Post# of 63744
I guess you didn't understand...debt payments are not included in Net Income/EPS calculations. Debt payments come into play in the Cash Flow statements....things like debt/capital, Quick Ratios, interest coverage, etc., all have to do with "Financial Strength"...while EPS, price to Earnings, Price to Sales, PEG Ratio, etc., has to do with "Valuation" i.e. Stock Price. I'm not saying that debt isn't considered by investors but I am saying that debt does not play into EPS via the normal calculation.

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