The sources of public utility capital

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Monograph

Identifikator:: 1765274494

URN:: urn:nbn:de:zbw-retromon-144018

Document type:: Monograph

Title:: The sources of public utility capital

Place of publication:: Urbana

Publisher:: University of Illinois

Year of publication:: 1928

Scope:: 52 Seiten; graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: IV. The ratio of surplus and reserves to total equities

Collection:: Economics Books

28 BuLLerin No. 20 increasing, there has been a decrease of the percentage of cases grouped about the mode. That is, a few of the companies have increased their surplus and reserves ratio to a greater extent than the typical company. Consequently, although the modal ratio has increased, the percentage of concentration has decreased, due to the still greater increase of the ratios in a few of these companies above the modal average. SUMMARY OF THE SURPLUS AND RESERVES RATIO In the United States as a whole the typical utility company has a Surplus and Reserve item in its balance sheet which constitutes .071 of its Total Equities. Companies in the Middle West and West have ratios of .0S, those in the East have a ratio of .07 and those in the South a ratio of .03. The very low ratio of surplus in the South is highly representative of the companies on which it is based ; 79 per cent of the cases were concentrated about the mode in three out of 22 class intervals. Typical ratios of Surplus and Reserves for companies of 5-9 mil- lions and 10-49 millions of equities are .05. Companies with 50 millions of equities and over have a higher proportion of Total Equities in Surplus and Reserve, namely, .08. Furthermore, the largest group of companies shows practically no deficits. In the analysis by operative function of the companies, the Trac- tion Companies have the highest modal ratio of 08 (.077) with ap- proximately .05 for both Gas and Electric, and Holding. However, in contrast to this is the great percentage of negative ratios in Traction Companies, wherein 13 per cent of the cases had deficits instead of surplus. When analyzed by selected years, the modal ratios are almost con- stant from 1917 to 1921, ranging from .047 to 051, but in 1924 the ratio jumped to .077. This large increase in this ratio is easily ac- counted for by the reaction and recovery of utility company profits following the decline of business in 1921 and 1922 with its accompany- ing fall of operating costs due to reduced commodity prices.

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