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The Debt/Equity Ratio illustrates how much debt financing a company uses in its capital structure. The higher this ratio is, the more a company is using debt to finance growth. The danger with a high Debt/Equity Ratio is that if the company’s “enhanced” earnings fail to outweigh the overall costs of debt financing, this can throw the company into peril.

A company’s 1-Year Fiscal Revenue Growth shows investors how well it has grown the top line over multiple periods of time. While one or two spectacular quarters may bring a pop to the stock, finding companies that illustrate a clear trend of growing revenue over a longer period of time are more likely to be rewarded. Given the constant fear of a slowing global economy, this metric can help indentify which companies may be weathering the storm better than others.

We ran a screen for small cap companies that have a low Debt/Equity Ratio (X<.5). From this narrowed pool we then screened for those that illustrated solid top-line growth (1-Year Fiscal Revenue Growth Rate>10).

The 1-Year Fiscal Revenue Growth Rate ranks the companies from highest to lowest:

1. Spreadtrum Communications, Inc (SPRD)

Sector

Technology

Industry

Semiconductors

Market Cap

$965M

Beta

1.44

The company designs and manufacturers processor solutions wireless communications market. The company’s 1-Year Revenue Growth Rate is 229.63. SPRD’s Debt/Equity Ratio is (TTM) is 0.02. The short interest was N/A as of 08/15/2011.

2. Power-One, Inc. (PWER)

Sector

Technology

Industry

Electronic Components

Market Cap

$732M

Beta

2.14

The company deals in power conversion and power management. The company’s 1-Year Revenue Growth Rate is 142.63%. PWER’s Debt/Equity Ratio is (TTM) is 0.10. The short interest was 36.40% as of 08/15/2011.

3. ReneSola Ltd. (SOL)

Sector

Technology

Industry

Solar

Market Cap

$264M

Beta

2.79

The company manufactures solar wafers. The company’s 1-Year Revenue Growth Rate is 136.20%. SOL’s Debt/Equity Ratio is (TTM) is 0.21. The short interest was N/A as of 08/15/2011.

4. Trina Solar Limited (TSL)

Sector

Technology

Industry

Solar

Market Cap

$900M

Beta

2.99

The company offers integrated solar-power products. The company’s 1-Year Revenue Growth Rate is 119.81%. TSL’s Debt/Equity Ratio is (TTM) is 0.31. The short interest was N/A as of 08/15/2011.

5. Yongye International, Inc. (YONG)

Sector

Basic Materials

Industry

Agricultural Inputs

Market Cap

$303M

Beta

1.68

The company develops and sells fulvic acid-based nutrient compounds. The company’s 1-Year Revenue Growth Rate is 118.25%. YONG’s Debt/Equity Ratio is (TTM) is 0.01. The short interest was 9.00% as of 08/15/2011.

6. Hanwha SolarOne Co Ltd. (HSOL)

Sector

Technology

Industry

Solar

Market Cap

$333M

Beta

2.52

The company is a manufacturer of both PV and cell modules. Its 1-Year Revenue Growth Rate is 99.22%. HSOL’s Debt/Equity Ratio is (TTM) is 0.19. The short interest was N/A as of 08/15/2011.

7. Suntech Power Holdings Co., Ltd (STP)

Sector

Technology

Industry

Solar

Market Cap

$789M

Beta

3.17

The company designs and manufactures a variety of PV cells and modules. The company’s 1-Year Revenue Growth Rate is 71.38%. STP’s Debt/Equity Ratio is (TTM) is 0.46. The short interest was N/A as of 08/15/2011.

8. Echo Global Logistics, Inc. (ECHO)

Sector

Industrials

Industry

Trucking

Market Cap

$285M

Beta

N/A

The company offers transportation and supply chain management services. Its 1-Year Revenue Growth Rate is 64.27%. ECHO’s Debt/Equity Ratio is (TTM) is 0.06. The short interest was 24.30% as of 08/15/2011.

9. Lattice Semiconductor (LSCC)

Sector

Technology

Industry

Semiconductors

Market Cap

$ 634M

Beta

1.81

The company designs and sells programmable logic software and products. The company’s 1-Year Revenue Growth Rate is 53.16%. LSCC’s Debt/Equity Ratio is (TTM) is 0.02. The short interest was 4.70% as of 08/15/2011.

We hope this list helps investors as they do their own due diligence on small cap companies.

Source: 9 Low-Debt Small Caps Logging Impressive Growth