It depends on preference. I personally tend to look at Balance Sheets and if they have sufficient cash.
Trading 212 for example includes the debt as a percentage of assets (though it may well be out of date) of a company on the app and you can also see its cash available. I don’t tend to invest in companies with debt over 80% (I scrutinise them more) and ideally I like it to be under 50%. Personal preference really.
Also, if you are researching them really in depth then you probably want to look at whether other companies in the sector are better than them and whether the sector has a future. eg. an quick example on a newspaper: Maybe its sales of paper newspapers have declinining revenues (Sales / money) but the company has several online newspapers that areproviding significant revenue and are growing quickly… (I don’t recommend investing in online newspapers, its just a example)
Different people have different methods. See @jcksmith850’s analysis on Legal and General,@Scrooge_McCodf’s analysis of Pan African Resources or mine on Neurones as an example:
Note: I am NOT suggesting that you invest in any of these companies and the posts are a few months old therefore the price of the companies’ is different, its just a example of what different people look at when they evaluate a company.
https://community.trading212.com/t/fundamental-analysis-of-legal-general-lgen/6471?u=equityinvestor
The Pan African Resources analysis is mainly on an article: https://medium.com/@Codf/theres-lots-to-love-about-pan-african-resources-df6e5eb7acc3?_branch_match_id=788891637095249184