cover image: Canadian corporate balance sheets solid as a rock

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Canadian corporate balance sheets solid as a rock

30 Oct 2012

If we compare the current standing of corporate balance sheets in the first half of 2012 to what they looked like some 20 years ago, the picture has brightened significantly. Going forward, a softer profit environment will likely keep asset growth more modest. We are likely to continue to see a heightened preference for cash over the next 6-9 months. However, over the medium-to-longer term we anticipate that non-financial corporations will start to invest less in cash and more in fixed capital. Debt will grow as a more important source of funding those investments.
economics economy bond recession investment bonds business capitalism corporations debt investments liquidity prices earnings balance sheet bank mortgage balance sheets business finance financial economy, business and finance business economics dividend credit and debt bond (finance) asset liquidity (economics) debt-to-equity ratio financial leverage

Authors

Burleton, Derek

Pages
6
Published in
Canada

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