Trends affecting power company securities
Amid signals that could be interpreted as meaning that the quality of earnings in the electric utility industry was declining, and strong assertions by some authorities that this was the case, it seemed desirable to the author to examine some of the basic values involved in electric utility securities. His goal was to see if recent power companies' debt and issues of equity can justifiably be viewed as having declining investment value. The basic concept for the undertaking was that the financial strength of a firm depends on its relative ability to generate sufficient funds to meet necessary outflows. The author concludes that, unless utility companies can improve the inflow and outflow balance, adequate capital cannot be raised for expansion without raising interest rates and stock dividends.
- Research Organization:
- Univ. of Virginia, Blacksburg
- OSTI ID:
- 6667075
- Journal Information:
- Public Util. Fortn.; (United States), Vol. 102:5
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
ELECTRIC UTILITIES
ECONOMICS
ACCOUNTING
CAPITAL
CHARGES
ECONOMIC ANALYSIS
FINANCIAL DATA
INCOME
INPUT-OUTPUT ANALYSIS
INTEREST RATE
INVESTMENT
DATA
INFORMATION
MANAGEMENT
PUBLIC UTILITIES
296000* - Energy Planning & Policy- Electric Power
290200 - Energy Planning & Policy- Economics & Sociology