.jpg?lang=en-US&ext=.jpg)
.gif?width=220&height=200&mediaprotectionhash=374c6b9a31f2b2fbfc7937391034efb46fd57feba997b9ad2ae9a0bd3d48329d&ext=.gif)
Report: The World's Biggest Steelmakers Owe More Than US$150B
08/18/2016 - The world’s 30 largest steelmakers are collectively saddled with net debts of US$150 billion, an average of US$5 billion apiece, and some steelmakers appear to be on the verge of bankruptcy, according to professional services firm Ernst & Young.
In a report, EY said that the rise in steel sector debt has occurred amid a decline in global and Chinese steel demand, spurred by weaker economic conditions and a rebalancing of the Chinese economy.
“Consequently, margins have shrunk and with a limited free cash flow, companies have turned to taking loans to finance their operations. As a result, leverage has steadily increased since 2008. We have also seen an increase in total debt as a percentage of total company assets, indicating that assets financed through debt have steadily increased,” EY wrote.
You can read the full report here.
“Consequently, margins have shrunk and with a limited free cash flow, companies have turned to taking loans to finance their operations. As a result, leverage has steadily increased since 2008. We have also seen an increase in total debt as a percentage of total company assets, indicating that assets financed through debt have steadily increased,” EY wrote.
You can read the full report here.
.gif?width=100&height=200&mediaprotectionhash=e2d5b15d68f84f22038524be6c58e5268d67b7f44494b544e29a8d53c5b959ba&ext=.gif)
