V. THE RATIO OF PREFERRED STOCK TO
TOTAL EQUITIES
The four ratios already described in this bulletin constitute in
themselves a complete picture of the total equities of the utility com-
panies. One of these ratios—the Capital Stock—will now be analyzed
to determine in what proportions it is composed of preferred stock and
common stock under the various conditions. The ratio of Preferred
Stock to Total Equities is the one taken up here; the Common Stock
to Total Equities follows in section VI.
Since many of the companies grouped all their stock under the
caption of capital stock and since some companies did not finance
through preferred stock, only 884 ratios of Preferred Stock to Total
Equities were obtained. Chart 5a gives the graphic distribution of
858 of these cases; 26 of the ratios were omitted because they were
unusually large.
The mode for this distribution is .156. The degree to which this
ratio is typical is shown by the percentage of cases concentrated about
the mode, namely, 50 per cent. This ratio shows a very strong tendency
to remain in the lower class intervals, as evidenced by the high con-
centration between 00 and .24. Specifically, 83 per cent of all these
cases had Preferred Stock of less than .24 of the Total Equities.
THE GEOGRAPHICAL DISTRIBUTIONS
Table Vb of the Appendix gives the frequency and percentage
distributions for the ratio of Preferred Stock to Total Equities by
geographical location. Because of the irregularity of distributions, no
exact modes have been calculated. The class interval with the largest
number of cases and the percentage of cases grouped about that class
interval for each section are:
Middle
East West West South
Dominant class interval. ......... .... .16—-.199 .08-.119 .12-.139
Concentration about the interval... .... 479, 509%, 709,
No figures are given for the East because the distributions for
that section do not show a tendency towards any central peak. If the
class intervals for the other three sections of the country are rear-
ranged. thev follow in the order:
Went. ovommesnmmesrmus amp ss mus eammss mens
BOE, 44 nos mm es HRs SESS FRAY BEE FES 4
Middle West . . .
Class Interval Concentration
.08-.119 5097
.12—-.159 709,
.16-.199 479,
