What is the appropriate asset-liability ratio?
Generally speaking, it is appropriate for an enterprise to keep its asset-liability ratio at 40%-60%. Of course, it also depends on what industry it is. Enterprises in different industries handle debts in different ways. Enterprises with higher operational risks usually choose lower asset-liability ratio to reduce financial risks. For example, the debt ratio of some high-tech enterprises is generally low, while enterprises with low operational risk usually choose higher asset-liability ratio in order to increase shareholders' income. Such as water supply and power supply enterprises.
For investors, it is better to choose a company with a low asset-liability ratio, because with a low asset-liability ratio, there is no need to worry about the insolvency and outbreak of listed companies. In addition to the asset-liability ratio, we should also pay attention to the net profit index of listed companies. If the net profit increases, it means that listed companies are making money, which is good for the stock price. Of course, the growth of net profit also depends on whether it meets expectations. If it doesn't meet expectations, it will be bad for the stock price.