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Gearing Could Become Problematic in the US

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Gearing could be problematic if earnings stagnate and rates increase | #ChartOfTheDay

 

  • Net-debt to equity is well-above the 2008 level, while times-interest-earned is slightly lower
  • Worth pointing out is that the effective interest rate is significantly lower now
  • Problematic if earnings stagnate and rates increase

 

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Posted in Chart of the Day