Summing up: Vigilant leaders A debt-to-equity ratio of below 0.5 is preferred. Debt can disrupt even the best businesses because it limits flexibility and agility. To maintain flexibility, you should also make sure that you are getting more cash in than what is going out. This can be measured by the current ratio, which should be at least 1.5. Vigilant leaders also aim to make a decent return on equity (ROE). Above 8% consistently over a period of ten years is a strong indication of great management. Management is your agent. Their one and only task is to give you the most value for your
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