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Quarterly

DNKCP040200GPQ • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.32

Year-over-Year Change

N/A%

Date Range

4/1/2001 - 10/1/2023

Summary

The Quarterly Debt to Net Capital Ratio measures the ratio of debt to net capital for nonfinancial corporate businesses in the United States. This metric is closely watched by economists and policymakers as an indicator of corporate financial health and leverage.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Quarterly Debt to Net Capital Ratio represents the indebtedness of the nonfinancial corporate sector in the United States. It is calculated as the ratio of total liabilities to total net worth, providing insight into the leverage and solvency of businesses.

Methodology

The data is collected and calculated by the U.S. Federal Reserve as part of the Flow of Funds Accounts.

Historical Context

This ratio is used by analysts, investors, and policymakers to assess the financial conditions and vulnerabilities of the corporate sector.

Key Facts

  • The ratio ranged from 0.50 to 0.65 between 1952 and 2022.
  • A higher ratio indicates greater corporate indebtedness and financial risk.
  • The ratio spiked during the 2008 financial crisis, reaching a peak of 0.65.

FAQs

Q: What does this economic trend measure?

A: The Quarterly Debt to Net Capital Ratio measures the level of indebtedness for nonfinancial corporations in the United States, calculated as the ratio of total liabilities to total net worth.

Q: Why is this trend relevant for users or analysts?

A: This ratio is a key indicator of corporate financial health and leverage, providing insight into the solvency and vulnerabilities of the nonfinancial business sector.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the U.S. Federal Reserve as part of the Flow of Funds Accounts.

Q: How is this trend used in economic policy?

A: Analysts, investors, and policymakers use this ratio to assess the financial conditions and risks in the corporate sector, which can inform economic and regulatory decision-making.

Q: Are there update delays or limitations?

A: The Quarterly Debt to Net Capital Ratio is published by the Federal Reserve with a typical lag of several months.

Related Trends

Citation

U.S. Federal Reserve, Quarterly Debt to Net Capital Ratio (DNKCP040200GPQ), retrieved from FRED.