In this instance, with Net Debt of EUR 65.6 mio representing only 42 %
of Gross Debt of EUR 155.2 mio, underlying Interest Coverage is even stronger — I'll speak more about the B / S Cash a little later.
$ 5.7 trillion
of gross debt was issued in 2004 according to Thomson Financial numbers, while GDP grew $ 4 trillion (currency exchange rate).
And the situation in several European countries today provides an example of how high levels
of gross debt can themselves leave a country vulnerable to unstable market dynamics.
Not exact matches
The federal
debt will reach 150 %
of gross domestic product by 2047, up from 77 % today, the report by the Congressional Budget Office said.
Their newest paper uses historical data from multiple countries to show that an increase in the ratio
of household
debt to
gross domestic product over a three - to - four - year period predicts a decline in economic growth.
Japan's government has among the highest
debt levels in the world, with a
debt - to -
gross domestic product (GDP) ratio
of 220 percent.
Greece's
debt amounted to more than 300 billion euros (nearly $ 330 billion), representing roughly 180 percent
of its
gross domestic product in 2015.
Benjamin Tal, an economist with CIBC, reported in a study earlier this year that heavy borrowers, those with household
debt - to -
gross income ratios above 160, accounted for 34 %
of all borrowers compared to 26 % in 2007.
European institutions and the International Monetary Fund (IMF) have struggled to find an agreement over how to make the Greek
debt — which stands at about 180 percent
of gross domestic product — more sustainable.
Corporate
debt in China exceeds 250 %
of gross domestic product, and the government has put restrictions on international investment because the value
of the yuan was falling so fast.
And last month, an international financial group owned by the world's central banks said Canada's credit - to -
gross - domestic - product and
debt - service ratios show early warning signs
of potential risk to the domestic banking system in the coming years.
LGFV
debt, however, has continued to rise with 4 trillion yuan ($ 605 billion) worth
of LGFV bonds issued since 2015 still outstanding, equivalent to 5.4 percent
of China's
gross domestic product.
«Everyone tends to focus on the
gross amount
of debt... Although China's
gross debt numbers are high, the U.S. numbers are higher still, so it's not really a fair comparison,» said Andy Seaman, chief investment officer at Stratton Street.
Japan's
gross debt is equivalent to 234 %
of its GDP.
And,
of course, a massive budget deficit because
of a lack
of alternative sources
of revenue: Moody's noted that the country's
gross borrowing requirements through 2019 will average 17 %
of GDP, because much
of the
debt it issued during the boom times is falling due in the next two years.
The 7/22 FT reported: «Across countries that use the euro, average
debt to
gross domestic product reached 92.9 per cent in the first quarter
of 2015, up from 92 per cent in the previous quarter and 91.9 per cent in the same period last year, according to figures from Eurostat, the EU's statistical agency.»
Earlier today, the credit ratings agency Moody's noted that China's total
debt has climbed to 280 %
of gross domestic product, including China's state - owned company liabilities that totalled 115 %
of GDP at the end
of last year.
Statistics Canada reported September 15 that the credit - market
debt of Canadians exceeded
gross domestic product in the second quarter.
Household
debt is also relatively high at around 88 percent
of gross domestic product (GDP) capping consumer spending.
The fresh numbers come as an international financial group owned by the world's central banks says Canada's credit - to -
gross - domestic - product and
debt - service ratios show early warning signs
of potential risk to the banking system in the coming years.
On the government front, net
debt edged to a nine - year high
of 51 per cent
of gross domestic product.
Presto: Canada's
debt was 43 %
of gross domestic product when Martin quit as finance minister, compared with 66 %
of GDP when he began in 1993.
Financial markets are worried about China because its
debt has surged to a record 237 %
of gross domestic product, according to the Financial Times.
Rather than duplicating it himself by opening and operating a second location, then a third, then a fourth, probably incurring substantial
debt in doing so, he instead has other independent operators invest their money in replicate outlets and takes a royalty, typically 5 percent to 7 percent
of the
gross revenues
of every such location.
Corporate
debt grew from 102 percent
of Chinese
gross domestic product (GDP) in 2007 to 165 percent by 2015, as the chart below shows.
Bloomberg also said that fund manager Bill
Gross raised the amount
of insurance the fund provides on sovereign
debt and invested $ 1.3 billion into Italian Treasury bonds linked to inflation.
But it said it could lower Germany's rating if its
debt, now 80 percent
of gross domestic product, reached 100 percent.
Taken together with local government borrowing and other obligations, China's
gross government
debt could be as much as 60 %
of gross domestic product, says UBS China economist Wang Tao.
The Bank
of Spain estimated the
gross return on Spanish residential investment at 4.2 percent in 2017, almost triple the cumulative yield on 10 - year government
debt.
Your DTI is the amount
of debt you're paying off each month relative to your monthly
gross income.
Appearing on «Bloomberg Surveillance» on Friday,
Gross (left) said PIMCO continues to avoid the
debt of nations including Spain and Portugal in favor
of U.S. Treasuries and mortgage securities.
Investors should monitor current events, as well as the ratio
of national
debt to
gross domestic product, Treasury yields, credit ratings, and the weaknesses
of the dollar for signs that default risk may be rising.
Gross writes that, «Soaring
debt / GDP ratios in previously sacrosanct AAA countries have made low - cost funding increasingly a function
of central banks as opposed to private market investors.»
You'll also want to have a maximum loan - to - value ratio
of 80 %, and your
debt - to - income ratio must be equal to or less than 36 %
of your monthly
gross income.
Li said China would also help with the construction
of highways, airports and ports and provide financial aid, goods and no - interest loans to the country, which was struggling under the weight
of a US$ 1 billion
debt — almost equivalent to its annual
gross domestic product — in the wake
of the 2008 financial crisis.
Public - sector solutions to resolve the Europe's
debt crisis from institutions such as the International Monetary Fund and the ECB are «merely bodies exchanging cards in a game
of old maid,»
Gross added.
Gross raised the proportion
of U.S. government and Treasury
debt in the $ 261 billion Total Return Fund to 35 % in May, the first increase since January and up from 3 %
of its holdings in April.
The budget's savings, without the economic effects it claims, would stabilize the
debt and put it on a slightly downward path, falling from 77 percent
of Gross Domestic Product (GDP) in 2017 to 75 percent by 2027.
This means that you should spend no more than 28 percent
of your
gross monthly income on total housing expenses, and no more than 36 percent on total
debt service (including the new mortgage payment).
The Importance
of Profit and Loss Information Profit and Loss Statement Cash Flow
Gross and Net Profit What Should Your Profit Mark - Up Be Vanity or Sanity - Sales or Profit Getting Paid on Time Chasing a Bad
Debt The Art
of Negotiation Examples
of Negotiation Successful Tips on Negotiation
With interest, that would be enough to increase
debt to 111 percent
of Gross Domestic Product (compared to 89 percent
of GDP in CBO's baseline) by 2027.
HPFS
gross margin decreased for the three and nine months ended July 31, 2011 due primarily to lower portfolio margins from a higher mix
of operating leases and higher transaction taxes, the effect
of which was partially offset by higher margins on lease extensions and lower bad
debt expense as a percentage
of revenue.
The latest forecast
of the University
of Ottawa's Institute
of Fiscal Studies and Democracy shows that rising interest rates threaten Morneau's promise to contain Canada's
debt at current levels relative to
gross domestic product.
The decrease in
gross margin was the result
of lower portfolio margins from a higher mix
of operating leases and higher transaction taxes, partially offset by higher margins on lease extensions and lower bad
debt expense as a percentage
of revenue.
This means a borrower's total recurring
debts should add up to no more than 43 %
of his or her
gross monthly income.
That meant that a borrower's total
debt (including the mortgage loan, car payments, credit cards, etc.) could not exceed 45 %
of his or her
gross monthly income.
With
debt already higher as a share
of Gross Domestic Product (GDP) than at any time other than the aftermath
of World War II, this new
debt is likely to slow economic growth and hasten the country's fiscal deterioration.
For instance, conventional loans — typically a conventional loan from a bank or other mortgage lender — will require no more than 26 % to 28 %
of month
gross income for housing costs and not more than 33 % to 36 %
of monthly housing plus
debt costs.
Investors should monitor current events, as well as the ratio
of national
debt to
gross domestic product,
One sound benchmark to adhere to is the 36 % rule: The total sum
of all your
debts should be no more than 36 %
of your
gross income.