When analyzing companies' balance sheets, many investors compare assets to liabilities with ratios like the debt-to-equity ratio. In the video below, Fool contributor Daniel Sparks suggests to instead focus on a company's ability to service its debt. Specifically, he suggests using the debt burden ratio. Comparing Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) on this metric to other blue chip stocks, these tech behemoths look extremely compelling.
Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Apple, Google, Starbucks, Walt Disney, and Waste Management. The Motley Fool owns shares of Apple, Google, Microsoft, Starbucks, Walt Disney, and Waste Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.