Does the company have debt? If so, how much?
Ideally you want a company with no debt! If they do have debt, you want a
very small amount of debt in comparison to cash flow. For example, if a
company has $100 million in debt and only has positive cash flow of $10
million a year that company is in serious trouble! Unless it experiences
incredible growth and earnings and cash flow increase dramatically, that
company will not be able to sustain its debt.