A balancing act

market graphics


This chart provided by Deutsche Bank shows the extent to which America’s corporate balance sheet has improved in recent years. Based on a sample of about 200 non-financial companies, the ratio of debt to equity as measured by book value has fallen from 0.79 since its peak in mid-2002 at 1.

In the same period, European corporate balance sheets have actually become weaker. And whereas the average US company’s balance sheet is the strongest it has been for more than a decade, the exact opposite

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