Corporate Leverage

April 2, 2019 Economists like to keep an eye on the amount of leverage amongst corporations.  When corporations take on huge amounts of debt in relation to their net worth, any economic downturn will be much more severe than it would otherwise be as corporations...

Business Inventories / Sales Ratio

May 8, 2018 Firms are always trying to keep their inventories in line with sales.  When the economy falls into recession, typically businesses do not cut back production as quickly as sales decline, so the inventory/sales ratio rises sharply  — which is exactly...