A company's Property, Manufacturing Plant, and Equipment are the things that the company has or uses to make their products. Some examples are buildings, machines, vehicles, computers, furniture, etc. They are listed as Assets that depreciate on the balance sheet. Companies with a Durable Competitive Advantage don't upgrade their Manufacturing Plant and Equipment often. And they do not finance its upgrade with Debt.
The value of the company's Property/Plant/Equipment must be greater than the Total Debt. It should also be increasing historically with Net Income. If Property/Plant/Equipment is increasing with Net Income, the company is growing. They are making more of their products and people are buying them.
Equations
Check if Property/Plant/Equipment is greater than Total Debt:
Check if Property/Plant/Equipment is increasing with Net Income:
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