These are some factors to consider when buying a stock

For this post, i will quote the example from Swissco Holdings FY2012 financial statement.

Source: http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_7E3838BAE920403448257B1E0033133B/$file/FY2012SHLYearEndAnnouncement_26Feb13.pdf?openelement

• Repayment of borrowings > Proceeds from borrowing (both in 2011 and 2012)
• Net increase in cash and cash equivalents (both in 2011 and 2012)

When the repayment of borrowings amount is more than the proceeds from borrowing means that the company is able to generate more cash from previous borrowings to reduce its debts. It is good for the shareholders because it allows shareholders to own more assets than the company's debts.

Below is the image showing the Net Asset Value(NAV) per share. When debts are reduced, NAV will increase.

The net increase in cash and cash equivalents also reflected positively on the company's performance as it is able to generate more cash than expenses.