This chapter is from the book
Better Balance Sheets
Even if accounting was not your forte as a student, and all you remember from that class was that the “debits are closest to the windows,” you need to think about this. Generally, smaller, unknown companies operating in seemingly “un-sexy” industries have cleaner balance sheets. There is a reason for this. They just don’t have the easy access to capital as do their Silicon Valley or large-cap counterparts. This makes these managements very good “stewards of capital.”