[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help] 

Status: Not Logged In; Sign In

Dr. David Martin discusses a proposed bioweapons attack scheduled for July 2025. MSNBC horribly suggests the genocide against the SA refugees is justified. Cheap Tomatoes (And Immigration) SOTT Earth Changes Summary - April 2025: Extreme Weather, Planetary Upheaval, Turmeric Lowers Blood Pressure-How To Get the Most Out Of It Magistrate Judge Issues Warning to US Attorney Alina Habba and ICE After Arrest of Newark Mayor UK PM Starmer Slammed For Daring To Suggest Immigrants Should "Speak English" How $21 TRILLION Went Missing From U.S. Tax Payers! -Catherine Austin Fitts Diddy’s Collapse Was No Accident – Whitney Webb Connects the Dots! CANADIAN Soldiers Spill Hard Truth about Russia Ukraine War 10 Russian weapons used in Ukraine that worry NATO CAF It Looks Like Crypto Is Going to Be the Trigger for the Next Crisis—and Massive Plunder Jimmy Dore NYC Mayor Race Just Got CRAZY! ! US Treasury Shocks With Second Biggest Budget Surplus In History Democrats have reached peaked stupidity. The Forgotten History of Neurological Vaccine Injuries Israel to take full control of land registry in West Bank's Area C, cementing annexation Trump discusses end to Gaza war with Saudi crown prince ew numbers from the Bureau of Labor and Statistics show 800,000 jobs from last year never existed. Hamas releases Israeli-American captive Edan Alexander after direct talks with U.S. Despite Mainstream Panic, US Consumer Price Inflation Tumbles To Lowest In Over 4 Years Big Pharma Whistleblower Found Dead After Confirming Ivermectin Cures Cancer Store nothing in plastic Black Nurse Claims She Kills White Patients on Facebook BOOM…😂😂😂 Eric Church - Drink In My Hand Lower Bloood Pressure Dozens of Afrikaners arrive to Dulles with refugee status, sparking outrage "Absurd Conspiracy": French Media Rushes To Quash Claims Macron, Merz & Starmer Caught Hiding Cocaine On Kiev-Bound Train Mark Dice: Blsck Fatigue

Business/Finance
See other Business/Finance Articles

Title: Corporate America deep in debt - Goldman Sachs
Source: [None]
URL Source: [None]
Published: Nov 10, 2015
Author: staff
Post Date: 2015-11-10 22:40:45 by Tatarewicz
Keywords: None
Views: 10

RT... Years of low interest rates and a boom in mergers and acquisitions (M&A) have made American companies spend without looking back. This has resulted in the highest corporate debt in a decade, close to $1 trillion, according to a report by Goldman Sachs.

"Companies in the United States have taken advantage of low interest rates to issue record levels of debt over the past few years to fund buybacks and M&A. This has driven the total amount of debt on balance sheets to more than double pre-crisis levels," Goldman Sachs analysts headed by Robert Boroujerdi wrote in the note, acquired by Bloomberg.

According to the bank, since the global crisis of 2008, almost $1 trillion of goodwill, a type of intangible asset that occurs when one company pays premium for another, has been added to corporate balance sheets due to the US merger and acquisition boom. This led Goldman analysts to conclude that American companies have been unable to make efficient investments.

‘Biggest bubble ever, will be the biggest crash ever’ – Ron Paul to RT on US economy http://t.co/B530Scy1JFpic.twitter.com/NVmJg2USKi — RT (@RT_com) October 4, 2015

"We view persistently high levels of goodwill when accompanied by consistently low sector-relative financial returns as an indicator that the company has not used its asset base as productively as expected, which can ultimately dampen stock returns," the report says.

Goldman analysts say a looming US tax hike, which would be the first in almost 10 years, is likely to make investors more cautious about measures that increase corporate leverage.

"The specter of rising rates, potential global disinflation, declining operating profits and wider credit spreads continues to create near-term consternation for weak balance sheet stocks," according to the report.

Post Comment   Private Reply   Ignore Thread  

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help]