What causes dividends per share to increase?

July 9, 2024 No Comments

A: There are two primary causes for increases in a company’s dividend per share payout. The first is simply an increase in the company’s net profits out of which dividends are paid. The second is a shift in the company’s growth strategy that leads the

What changes in working capital impact cash flow?

June 30, 2024 No Comments

A: Understanding Working Capital Working capitalrepresents the difference between a firm’s current assets and current liabilities. Working capital, also called net working capital, is the amount of money a company has available to pay its short-term expenses. Positive working capital is when a company has more current

What changes in working capital impact cash flow?

July 7, 2024 No Comments

What debt to equity ratio is common for a bank?

July 9, 2024 No Comments

A: The average debt-to-equity ratio for retail and commercial U.S. banks, as of January 2015, is approximately 2.2. For investment banks, the average debt/equity is higher, about 3.1. The debt/equity ratio is a leverage ratio that represents what amount of debt and equity is being

What debt/equity ratio is average in the automotive sector?

July 9, 2024 No Comments

A: Investors and creditors assess an automotive sector company’s financial stability and health by determining its debt-to-equity (D/E) ratio. Investors can use this ratio to determine whether a company is able to fulfill its debt obligations. The automotive sector includes auto dealerships, auto parts stores,

What debt/equity ratio is common for companies in the drugs sector?

June 30, 2024 No Comments

A: The average long-term debt-to-equity (D/E) ratio common for companies in the drugs sector is 70.66 based on trailing 12-month data as of May 12, 2015. The drugs sector is composed of more specialized industries, including drug delivery, drug manufacturers – major, drug manufacturers –

What debt/equity ratio is common for companies in the drugs sector?

July 7, 2024 No Comments

What debt/equity ratio is common for companies in the telecommunications sector?

July 9, 2024 No Comments

A: Telecommunications companies engage in capital-intensive projects that require large investments in infrastructure, wireless towers, data lines and other communication equipment. To avoid stock dilution, telecom companies typically finance their investment projects by issuing corporate bonds or secure term loans from financial institutions, resulting in

What debt/equity ratio is typical for companies in the utilities sector?

June 30, 2024 No Comments

A: In the utilities sector, for companies providing general utilities such as gas and electricity, the average debt/equity ratio, or D/E ratio, is approximately 1.3. For companies primarily engaged in providing water and sewage service, the average ratio is slightly lower, approximately 1.2. Utilities carry

What debt/equity ratio is typical for companies in the utilities sector?

July 7, 2024 No Comments

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