example, in which revenue in one year amounted to $17 per dollar of
net worth: in another case where net worth amounted to only 3 per
cent of total assets the revenue ratio was $6 per dollar of net worth.
Such extreme cases are of course infrequent, and the conditions producing
 them are unusual due to temporary special causes. Nearly two-thirds
of the ratios which are above 1 are less than 2, and 17 per cent are
over 3.
With regard to location the unusual cases are distributed geographically
 in about the same way the normal cases are, with perhaps, some
tendency to be concentrated in the East and Middle West. About 86
per cent of the unusual cases are in these two districts in comparison
with 74 per cent of the normal revenue/net worth ratios. There is a
tendency, however, for the unusual ratios to appear in traction companies;
 56 per cent of those cases are found in this type of company as
compared with 25 per cent of the cases of typical ratios. It is to be
Bureau oF Business RESEARCH
UNIVERSITY OF /iLINOIS -24
hn’
i
L ss
AVERAGE
(Moo)
2 29
bik
|
2 Ek
BR
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~ [o) . 1 Cy" TING EG)
MLE YT 2.5 2%
P33 NPL Ine
Ratios Lxpressed as Percentages
Cuarr 2a—Frequency Distrisution oF 1417 Ratios oF Gross
Revenue To Ner Worta From 200 Pusric UriLity
Companies, 1915-1924
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