BuLrerin No. 20

Tne OF ysiness Nesearce
wh gig of Hlineis
on

1"

Averaqe
(Mode)
ADT

Averaqe
Mode?
415

Average
(Moda)
530

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A

y £ . ; ox woe. on 8 aE
sor R28 FF BF Liaw $F Erdmoegoyox
5-9 Millions of Assets 10-49 Milliens of Assets 50 Millions or over of Asset
Ratios Expressed as Fercentages

CHART 1c—FREQUENCY DISTRIBUTIONS OF THE LonG-TeRM-DEBT-10-TOTAL-Equities
 Ratios oF PusLic UriLity COMPANIES BY S17E oF COMPANY

of equities, and 50 million dollars of equities and over. The distribution
 for these divisions are shown in Chart lc. The large companies
have a greater proportion of their capital provided by bonds than the
smaller companies, but they are in a position to risk trading on a
smaller equity, The approximated modes for these sizes and the percentages
 of cases concentrated about these modes are as follows :

Companies with ~~ Companies with Companies with
Total Equities Total Equities Total Equities
of 5-9 of 10-49 of 50 mallions
millions millions and over
Modal ratio. ................ .407 .475 .530
Concentration about the mode. 449, 519%, 449,
While these figures show that the larger companies assume greater
bonded indebtedness than smaller companies, they also show that there
is a greater degree of uniformity of policy in the moderate size companies
 than the others, as shown by the percentages of cases which
approximate the modal ratio. Stated differently, the modal ratios in
the small and large companies are less typical than the ratio for the
companies with 10-49 millions of equities.