Financial traffic-light bands

Green/yellow/red table for the six metrics from step 3.

Assign each metric a traffic-light colour. The bands are didactic orientation, not fixed limits — sector and business model always matter.

Metric	Green	Yellow	Red
Equity ratio	> 40%	20–40%	< 20%
Net debt / EBITDA	< 1.5×	1.5–3×	> 3×
Free-cash-flow margin	> 5%	0–5%	< 0%
EBIT margin	> 10%	3–10%	< 3%
Interest coverage (EBIT / interest)	> 6×	2–6×	< 2×
Working-capital trend	stable / falling	slightly rising	sharply rising

Reading: Mostly green → a solid base. Several yellow/red → understand the causes before going further.

Education only, not investment advice. Ranges and thresholds are didactic orientation values; sector and business model always matter. © Aktienwissen · aktienwissen.online