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Unformatted text preview: siness have different operating characteristics. Table 12.8 presents the
debt and times interest earned ratios for selected industries and lines of business.
Significant industry differences can be seen in these data. Differences in debt positions are also likely to exist within an industry or line of business. Capital Structure of Non-U.S. Firms
In general, non-U.S. companies have much higher degrees of indebtedness than
their U.S. counterparts. Most of the reasons for this are related to the fact that U.S.
capital markets are much more developed than those elsewhere and have played a 524 PART 4 Long-Term Financial Decisions FOCUS ON PRACTICE Enron Plays Hide and Seek with Debt Enron Corp.’s December 31, 2000,
balance sheet showed long-term
debt of $10. 2 billion and $300 million in other financial obligations.
These figures gave the company a
41 percent ratio of total obligations to total capitalization. That
didn’t seem out of line for a company in the capital-intensive
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