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National Bureau of Economic Research
Volume Title: The Pattern of Corporate Financial Structure: A Cross-Section
View of Manufacturing, Mining, Trade, and Construction, 1937
Volume Author/Editor: Walter A. Chudson
Volume Publisher: NBER
Volume ISBN: 0-870-14135-X
Volume URL: http://www.nber.org/books/chud45-
Publication Date: 1945
Chapter Title: Long-Term Debt and Net Worth
Chapter Author: Walter A. Chudson
Chapter URL: http://www.nber.org/chapters/c
Chapter pages in book: (p. 94 - 109)
LONG-TERMDEBTANDNETWORTH
THEFORCESAFFECTINGthecharacterandrelative proportionsof
long-termdebtandnetworth aresonumerousandsodifficult to
appraiseinquantitativetermsthattheinterpretation ofvariations
intheseaccountswithrespecttoindustry,size, andprofitabilityis
boundtobehazardous.Suchfactors asdepreciationpolicy,the
reinvestmentofearnings,corporatetaxation,and securitymarket
regulationsareamongthecomplexforces(other thancostcon.
siderationsandmarketconditions)which resultinthefinancial
planofanenterprise.Thedeclaration
ofstockdividends,the
revaluationofstock,thesaleofstock atapremiumordiscount,
andvariousothersurplusadjustments alsoshouldbementioned.
Nevertheless,interestremainsinthe
analysisofnetworthand
long-termdebt,according toindustry,size,andprofitability,iffor
nootherreasonthantodeterminewhethersuch factorstendto
eliminateanysystematic
patternintheseelementsoffinancial
structure.
DEBTANDEQUITYCAPITAL
Towhatextentdoestheproportionofowned assetsvaryamong
differentclassesofcorporations? Inansweringthisquestion, we
shallusetheratioof
networthtototalassets,ratherthan
the
moreconventionalratioofnetworth
tototaldebt,becausethe
formermaybecompared
directlywithratiosofother itemsto
totalassets,which wehaveexaminedinpreviouschapters.
Certainbroadindustrial variationsintheratioof networthto
totalassetsareofinterest.
Manufacturingas
awholehasthe
highestratio(74percent) andisfollowedcloselybymining (
percent);tradecorporations areinanintermediateposition(
percent);andconstruction (52percent)isthelowestof the
majorgroupsincludedin oursurvey.1Chart12revealsthatthe
1
Theutilities,railroads,andservice
Corporations__whicharenotincludedinour
studyhaveratiosof55,45,and percent,respectively.
94
PatternoJFflancialStructu,,
industrialrankingsofincomecorporationsfrequently
differfrom
thoseofthecorrespondingdeficit concerns,althoughthe rank
correlationbetweenthetwogroupsisabovethelevel ofstatistical
significance.Someevidenceofthestabilityofthe industrialdiffer.
encesisaffordedbytheconsiderablesimilaritybetweenthe
rank.
ingsoftheratioin1937andin1931.AtestoftheSECdata
alsorevealssignificantdifferencesinthe
proportionofequity
capitalamongthemajorindustrialdivisions.2The
evidenceon
thewholeindicatesthatindustrialvariationsin theproportionof
equitycapitalarenottheproductof mererandomforces.Classj.
ficationaccordingtoproducers'and consumers'goodsindustries
doesnotyieldsignificantdifferences,however.
Inbothincomeanddeficitcorporations ofthemajorindustrial
divisionstheratioofnetworth
tototalassetstendstoincrease
consistentlywithsizeofcorporation(Chart
13).Thisbehavior
iscomplementarytotheinversevariation withsizeofthe current
liabilitiesasapercentageoftotal assets.Thevariationofthe net
worth/totalassetsratioreflectsprimarily thestrikingbehaviorof
thesurpluscomponentofnetworth,whichisdiscussed
onpage
99,below.Theratioofcapital
stocktototalassetsactually
variesinverselywithsize,while theratiooflong-termdebt does
notshowanyconsistentvariation.
Theratioofnetworth tototalassetsisdecidedlylower among
deficitthanamongincome
corporations.TheSECdata
onnet
worthcomparedwithtotaldebt, groupedintoseveralprofitability
classes,alsoshowthe samerelationship,whichisfound tobe
statisticallysignificant.Further
examinationrevealsthatthesur-
pluscomponentofnetworthis thebasisofthisbehavior,just as
inthecaseofthevariation withcorporatesize.There isasignifi-
cantrankcorrelationbetweenthe profitabilityofminorindustrial
divisionsandthe
networth/totalassetsratio;this
correlation
indicatesthattheeffectof
profitabilityuponnetworthis sufli-
cienttobe
afactorindeterminingindustrial
differencesinthe
ratio.However,differences
intheprofitabilityof
varioussize
2The testwasmadewithdataforthe ratioofnetworthtototaldebt,which would,ofcourse,givethe sameresultsasthenetworth/total assetsratio. 'Thistendencyisstronger, however,amongcorporations withassetsoflessthan $1,000,000thanamonglarger concerns.Infact,theSECdatafor theratioofnet worthtototaldebt,whichrelate primarilytocorporationswith assetsover$1,000,000, donotexhibitstatisticallysignificant
variationswithcorporatesize.
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Loag.7e?$SDebtandNetWorth
Chart13RATIOOFNwrWORTHTOTOTALAssETs oiINcoMEAND
DEFICITGROUPSOFMAJORINDUSTRIALDIVISIONS,1937,s'
ASSETSIZE
INCOMECORPORATIONS (^) DEFICITCORPORATIONS
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LotTermDebteisdNetWorth
forahighpercentageofcapitalstocktobeassociatedwithalow
percentageofsurplusandviceversa.Nevertheless,theratioof
capitalstocktosurplusvariesfrom62to 567 percent,witha
medianvalueof193percent5(TableC28inDataBook).
Thecapitalstock/totalassetsratiovariesamongtheminor
industrialdivisionsinafairlyrandomfashion;thatis,thevaria-
tiondoesnotreflectspecificindustrialcharacteristics.Thecorrela-
tionbetweentherankingsofincomeanddeficitcorporationsisonly
mildlysignificant.Divisionofminorindustrialgroupsintopro-
ducers'andconsumers'goodsindustriesdoesnotyieldsignificant
results.Also,theindustrialvariationsoftheratioshownorela-
tionwhatevertotheaverageassetsizeortotheprofitabilityof
theminordivisions.
Theindustrialvariationsintheratioofsurplustototalassets
are,forthemostpart,nomoresystematicthanthoseofcapital
stock.Thecorrelationbetweentherankingsofincomeanddeficit
corporationsisnotsignificant;andclassificationaccordingtopro-
ducers'andconsumers'goodsalsoyieldsnosignificantresults.
However,thesurpluscomponentreflectssignificantdifferences
inassetsizeandprofitabilityamongtheminorindustrialdivisions.
Thelargertheaverageassetsize,thehighertheproportionof
surplus.Similarly,themoreprofitabletheindustrialdivision,the
greatertheratioofsurplustototalassets.Howmuchofthe
variationisattributableindependentlytosizeandhowmuchto
profitabilityisnotshownbythesimplecorrelationcoefficients
usedinthisstudy.Thefactthatthereislittlecorrelationbetween
averageassetsizeandindustrialprofitability,however,
indicates
thatbothfactorsexertindependentinfluenceonthesurplus/total
assetsratio.Therankcorrelationbetweenprofitabilityandthe
ratioofsurplustototalassetsisonlymoderatelystrong,and
numerousindustriesofrelativelyhighprofitabilityhaverelatively
lowsurpluscomponents.Thisisprobablymoretrueofanysingle
yearthanofaperiodofyears,sincesooneror
latertheeffectof
profitabilityonsurplusshouldbefelt.
Miningandquarrying"notelsewhereclassified"andallthetradegroupswith
extremelyhighratioshavebeenexcludedfromthisrange.
Unfortunately,acomparisonof1937resultswithearlieryea-aiinotpossible.
In1937,theitem"otherliabilities"wasreclassified,whichresulte'intheshiftingof
surplusreservesfrom"otherliabilities"into"surplus."SeeStaliticsofIncomefor
193?,Part2,p.23.
100 PatternofFinanciaj Structure
VariationswithCorporateSize
Bothcapitalstockandsurplusshowsystematic variationswithsize
ofcorporationinamajorityofindustrialdivisions.
Theratioof
capitalstocktototalassetsdeclinesassizeofcorporationincreases.
amongtheincomecorporations,however,mostofthe
declineis
confinedtocorporationsoflessthan
$1,000,000total
assets
(TableC-13inDataBook).Thesurplus/total
assetsratiorises
sharplyandconsistently amongdeficitconcernsandamongincome
corporationswithassetsoflessthan$1,000, (TableC-14in
DataBook).
Thevariationofthesurplus componentdominatestherelation
shipbetweennetworthand corporatesize.Themovementofthe
capitalstock/totalassetsratio appearstobelargelyinthe nature
ofacompensatory orpassiveadjustmenttothevariationof sur-
plus.Thereis notheoreticalbasisforexpectingcapitalstock tobe
asmallercomponentoftotalliabilities amongthelargecorpora-
tions;ifanything,the contrarymightbeexpected,becauseof the
greatereaseforlargecorporations
tofloatSecuritiesandtheir
tendencytoavoidshort-termdebt. Perhapsoneexplanationis that
smallcorporationscapitalize theirsurplusmorerapidly.
Whatisthebasisforthe
sharpincreasesinthesurplus com-
ponentamongcorporationswithtotaiassetsoflessthan$1,000,.
000?Inthe
caseofthedeficitcorporations,the answerappears
clearlytobethesharprise intherateofprofit(decline intherate
ofloss).The
enormousdeficitsoftheunprofitable corporations
withassetsunder$250, dominatetheupward sweepofthe
surplus/totalassetsratioand
inturnoftheratioof
networthto
totalassets.Thisis anoutstandingcaseoftheinteraction between
corporatesizeandprofitability.Thebasis
oftheincreaseinthe
ratioofsurplus tototalassetsamongincome
corporationswith
assetsoflessthan$1,000, islessclear,sincethe rateofprofit
inmostindustrial groupsactuallydeclinesslightly assizeofcor-
porationincreases.The
comparativelysmallsurplusamongthe
smallcorporationsoftheincome
groupmayreflectthegreaterin-
stabilityofearnings andpossibly arelativelyshorterlife, onthe
average,ofsmallenterprises.
Inconnectionwith variationsinthesurplus component,therela-
tionbetween corporatesizeandthereinvestment ofearningsis
102
PatternofFinancialStrct,.
incomeconcerns.Takingall manufacturingcorporations
asa
whole,thehigherratioof
capitalstockamongdeficit compared
withincomecorporations
(52percentand
percent,respec..
tively)reflectstheweight ofthesmallandmedium-sized corpora
tions.Amongtheminorindustrial divisionsthedifferencesin the
proportionofcapitalstockbetween incomeanddeficit corpora.
tionsarealsorelated tothefactthatthedeficitcorporations are
smallerthanthe
correspondingincomecorporations.For those
deficitcorporationswhose
ratioofcapitalstocktototal
assetsis
higherthanthatforincome corporations,totalassets apparently
haveshrunkwhilethe
bookvalueofoutstanding
capitalstock
hasnotbeenreduced proportionately,ifatall.
LONG-TERMDEBT
IndustrialVariations
In1937thelong-term debtofnonfinancial corporationswastwice
thesizeofshort-term debtintheformof notesandaccounts pay.
ableand percentoftheoutstandingcapital stock.Thefigure
wasstronglyaffectedbythe greatvolumeoflong-termdebtof the
railroadsandpublicutilities; inmanufacturingand trade,thelong-
termdebtwasmuchless important.Formanufacturing corpora-
tionsitamounted to67percentofnotesand accountspayableand
19percentofcapital
stock;intrade,the
respectivepercentage
figureswere24and16.
Amongtheminor
industrialdivisionstheratio
oflong-term
debttototalassets rangesfrom1to36percent,with thecentral
halfofthedistribution
lyingbetween5and
10percent.(See
TableC-28inDataBook.)
Therankingsofincome anddeficit
corporationsareverysimilar_an
indicationoffairly
persistent
industrialdifferences.The industrialrankingsfor and
alsoareverysimilar, whichwouldbe expectedsincetheshort-
runchangesinthevolumeof long-termdebt areboundtoberela-
tivelysmall.Thelong-term
debtratioishigher
ontheaverage
amongindustriesmanufacturing
producers'goodsthan
among
consumers'goodsindustries,but
thevariationwithin
thetwo
groupsissogreatthatthedifference isnotstatistically significant.
Differencesinthe averageassetsizeofminorindustrial groups
donotaffecttherelative volumeoflong-term debt.Amongthese
groupstherelationshipbetween
profitabilityandthe percentage
Lopg.Ter
Debt.isdNetWorth
103
oflong-termdebtisslightlyinverse,butitisbarelyabovethelevel
ofstatisticalsignificance.
Therelationshipbetweentheratiooffixedcapitalassetstototal
assetsandtheratio
oflong-termdebttototalassetsismoderately
directamongtheminor
industrialdivisions.Onthebasisofthe
SECdataindustrialdifferencesin
theratiooflong-termdebtto
fixedassetsarestatisticallysignificant,afactwhichyieldsfurther
evidenceoftheexistenceofa
relationshipbetweenlong-termdebt
andfixedcapitalassets.°
Dolong-termdebtandshort-term
debtactassubstitutesfor
eachotheramongthevarious
minorindustrialdivisions?Ananal-
ysisoftherankcorrelations
oftheratiosoflong-termand
short-termdebttototalassets
indicatesnostatisticallysignificant
relationship,inverseordirect.Thesame
absenceofasubstitute
relationship,onanindustrialbasis,
isfoundtocharacterizelong-
termdebtandcapitalstock.
Variationswith
CorporateSize
Therelationshipofcorporate
sizeandtheproportionof
long-
termdebtto
totalassetsdiffersbetweenincome
anddeficitcor-
porations.Intheformergroup
sizeisnotasignificant
factor.
Amongthedeficitcorporationsasa
whole,however,theratio
risesappreciablyascorporate
sizeincreases(TableC-
inData
Book),althoughanumberof
majorindustriesdonot
conform
tothegeneralpattern.
Moreover,theincreasesarenot
important
amongcorporations
withtotalassetsofless
than$1,000,000,so
thatthetendencymight
betterbedescribedasa
differenceinthe
leveloflong-termdebtbetween
corporationswithassetsofless
than$1,000,000andthose
withassetsinexcessof$1,000,000.
Theratioofnotespayableto
long-termdebt(andalso
the
ratioofnotesandaccounts
payabletolong-termdebt)
declines
sharplyassizeofcorporation
increases(Table10).
Thisdoes
notindicate,however,
thatlong-termdebt
substitutesforshort-
termdebt,since,asnotedabove,long-term
debtdoesnotincrease
withcorporatesize,exceptamong
thedeficitcorporations
and
thenonlyinanirregular
fashion.Long-termdebtasa
percentage
ofnetworthshowsno
significantrelationshiptocorporate
size
untilcorporationswith
totalassetsofmore
than$1,000,000are
°SeeSlatislicsofAmericanListed
Corporations,'Fable95,p.320.
I
Lo,,g.TeraDebtandNetWorth
reached,whentheratiobeginstorise
appreciably.Theratioof
long-termdebttofixed
capitalassetsvariesirregularlywithsize,
butitslevelamongcorporationswithassetsover$1,000,000is
definitelyhigherthanamongsmallerconcerns.
AtestofSEC
datafortheratiooflong-term
debttofixedcapitalassetsreveals
no
significantvariationwithsize,however;these
datarelate
primarilytolargemanufacturingcorporationswithassetsover
VariationswithProfitability
Theratiooflong-termdebtto
totalassetsisconsiderablyhigher
amongdeficit
thanamongincomecorporationsin corresponding
assetclassesandminor
industrialgroups.Thedifferencestendto
increasewithsizeofcorporation
becauseofthesharpriseofdebt
amongthedeficitconcerns.
Sincedeficitcorporationsalsohave
alarger
proportionofcurrentliabilities,the
higherratiofor
long-termdebtcannotbe
interpretedasasubstitutionoflong-
termforshort-term
obligations.Forthemostpartitappears
toreflectashrinkage
intheassetsofdeficitcorporations
without
acorresponding
shrinkageinthelong-termdebt.In
otherwords,
itreflectsthedifferencebetween
thesurpluscomponentsofin-
comeanddeficit
corporations.
Asindicatedabove,nocorrelation
existsbetweenprofitability
andtheleveloflong-term
debtamongminorindustrialgroups.
Amongthesizeclassesofthe
majorindustrialgroups,also,no
relationshipisevidentbetweenthe
variationsoflong-termdebt
andprofitability.Inaddition,
theSECdatashowno
significant
variationwithprofitabilityinthe
ratiooflong-termdebtto
fixed
assets.
TheFrequencyofLong-Term
Debt
Sinceacorporationhasno
inherentneedforanylong-term
in-
debtedness,itisinterestingto
knowwhattypesofcorporations
relymoreorlessfrequentlyupon
thissourceoffunds.Data
from
Statisticsof1lmericanListed
Corporationsindicatethatamong
corporationswithassetsofmore
than$1,000,000the
proportion
ofconcernshavingfunded
debtincreaseswithcorporate
sizeina
consistentfashion(Table11).Adistinction
shouldbedrawn,
however,betweenfunded
debtand"otherlong-term
debt,"which
1%
Patter,iolFinancialStructure
TableIl-PERCENTAGE OFLISTEDMANUFACTURINGC0RPOK-
ATIONSHAVINGLONG-TFRMDEBT, ANDTHERATIOOF
FUNDEDDEBTTOOIlIERLONG-TERM DEBT,1937,BYASSET
SIZES
aBasedondata,asofDecember 31,1937,fromStasistic.rofAmericanListed Corporasians, Part1,Tab!e64, pp.226-45. b Inclusiveofthelowerlimitandexclusive oftheupper.
isintheformof
mortgagesforthemostpart.1°The proportion
ofcorporationshaving
otherlong-termdebtof anon-funded
varietydeclinesslightly untilcorporationswith
assetsofover
$200,000,000arereached,after
whichtheproportion
rises
sharply.Thisrisemaybeduetotheimportanceamongthelargest
corporationsoftermloans,oil
landpurchaseobligations, and
otherpurchaseobligations.
Amongthesmallest
corporations
fundeddebtforms
alowerproportionoftotal
assetsthanother
long-termdebt;butfor
corporationswithassetsin
excessof
$1,000,000fundeddebtisthehigherofthetwoitems.
Table12revealsthatthe
relativefrequencyoffunded
debt
variesconsiderably
amongindustrieswithassetsof
morethan
$1,000,000.Utilitieshavethe highestproportion,and extractjve
industriesthelowest,ofthe mainindustry groups.Withinmanu-
facturingthefrequency
varicsfromahighof
percentiniron
andsteeltoa'owof percentintextiles.Thefrequencyof other
10
"Otherlong-termdebt"isdefined toincludemortgageloansand noteswitha maturityofoneyear ormore.Mortgagebonds,collateral bonds,debentures,equip- menttru,tobligations,andlong-term notesofthebondcategory areincludedin fundeddebt.Fundeddebt comingduewithin oneyearis excludedfromthis category.Seetheexplanatory notes,Statistic:ofAmericanListed p.181. Corporation,,
Sizeb
(inmiflions)
Proportion
ofCorporation,
HavingFunded
Debt
Proportion
ofCorporations
HavingOther
Long-TermDebt
Proportion
ofCorporations
havingFunded
PlusOther
Long-TermDebt
RatioofFunded
DebttoOther
Long-TermDebt
Under$1 (^) 6. 30.2 (^) 33.
1-3 (^) 8. 27.8 (^) 33.
3-5 (^) 21. 25.8 (^) 38.
5-10 (^) 23. 33.1 (^) 44.
10-20 (^) 26.
42.6 (^) 311.
20-50 (^) 30. 24.2 (^) 44.
50- 37.5 (^) 31. 56.3 (^) 335. 100-
200-
500andover
559
1,776.
Pattern0/'hIsanCI(j
Strucgjg,
porationshadbondsormortgages.1'This percentagefigure may
becontrastedwith41percentformanufacturing
corporations
withassetsofmorethan$1,000, (Table12).Verylikely the
smallconcernshave notonlyalowerproportionof
long..term
debtbutalsoalowerfrequencyofthis typeofliability.
Somefurtherlightisthrown ontherelativefrequencyof dif.
ferenttypesoflong-term liabilitieabycertainSECdata,
which
definefourtypesof"capital
structure"(Table13).
The most
Table13TYPES OFCAPITALSTRUCTURE,ALLLISTEDCOR-
PORATIONS,1937'
Basedondata, asofDecember31,1937,fromStatictics ofAmericanLijied Part1,Table51, Corporatjo,,j, p.188,andTable70,p.294.
frequenttypeconsists ofcommonstockonly, foundpredominantly
amongcorporationsofthe smallestaveragesize (i.e.,thosewith
assetsunder$1,000,000),
whichownonly percentoftheassets
ofalllisted corporations.
Table13shows
thatthecomplexity
ofcapital
structureis
relatedtothe
averageassetsizeof corporations,thecomplexity
growingas
averagesizeincreases.The tablealsoindicatesthat
theabsenceof
fundeddebtis
associatedwith arelativelyhigh levelofprofitability.
Thisrelationship maypossiblyreflect par- ticularindustrial orsizedifferences
aswellasprofitability,but
theavailabledata donotpermit
adeterminationofthis point.
Corporationswithfunded debthave
arelativelyhighratioof fixedcapital assetstototalassets,
reflectingnodoubt thepresence
CharlesL.Merwjn, Jr.,Financial Characterli1jC Corporation,,Tempoj-a,y ofAmericanManufacjurigq NationalEconomic ington,1941) CommitgceMonographNo.15(Wash- pp.110-12.Fiycindustric.
weresampled:baking, furniture,stoneand men'sclothing clay,andmachine tools.
CapitalStructure Frcgueni:y
Percent
of
Total
Average
Ascas
(millions)
Arerageof
NaProfit
perDollar
viNesWorth
Ratioof
FixedAsseg,
toTotal
Assets
Commonstockonly
Commonandpreferred
801 (^46) $ $9. 477
stock;nofundeddebt (^510) 29 21
Commonstockand
fundeddebt
Commonstock,preferred
(^144 ) 55
stock,fundeddebt (^286 ) (^129) 6.
y
8
Long-TermDebtandNetWorth 109
ofanumberofutilitycorporationsinthesample.Reasonsfor
thedifferencebetweentheratiooffixedcapitalassetsforcorpora-
tionswithcommonstockoniyandthatforcorporationswith
bothcommonandpreferredstockarenotclear.
INVESTEDCAPITALANDCAPITALASSETS
Oneofthemostpervasivefeaturesofbalance-sheetstructureis
themarginbywhichinvestedcapital(networthpluslong-term
debt)exceedsfixedcapitalassets.Onlyafewclassesofdeficit
corporationsdonotshowthismargin.Thatsomenon-current
sourcesoffundsareemployedforthefinancingofcurrentassets
isroughlyindicatedbythedegreetowhichcurrentassetsexceed
currentliabilities,asmeasuredbythecurrentratio.12Acomple-
mentarymeasureshowingthemarginbetweenfixedcapitalassets
andinvestedcapitalisprovidedbyaratiobetweenthetwoitems.
Amongtheminorindustrialgroups,theratioofinvestedcapital
tofixedcapitalassetsvariesfrom1to11times,withamedian
valueof2;thecentralhalfofthedistributionliesbetween2and
3(TableC-28'inDataBook).Aconsiderabledegreeofstability
intheseindustrialdifferencesisindicatedbyahighrankcorrela-
tionbetweenincomeanddeficitcorporations.Nostrongconnection
betweenindustrialtypesandthesizeoftheratioisdiscernible,
however,andatestrevealsnosignificantdifferencebetweenthe
meanratiooftheproducers'andconsumers'goodsindustries.
Theratiorisesmoderately,butnotregularly,withcorporate
sizeparticularlyamongdeficitconcerns.(SeeTableC-26in
DataBook.)Thetendencyforlessofthelong-termfundstobe
usedtofinancelong-termfixedcapitalrequirementsascorporate
sizeincreasesindicatesthataprogressivelylargeproportionofthe
fundsgoestofinanceintercorporateinvestmentsandcurrentassets.
Theratioisconsistentlyhigheramongincomecorporationsthan
amongdeficitcorporations,indicating,likethecurrentratio,that
incomecorporationsemployalargerproportionoftheirlong-term
liabilitiesforcurrentpurposes.Partofthedifferencemayalso
beattributabletothedecreaseinthesurpluscomponentofdeficit
corporationswithoutaproportionatedecreaseinthevaluationof
fixedcapitalassets.
Thisstatementisnotmeanttoimplyadirectconnectionbetweenagiven
sourceandagivenuseoffunds,butmerelytoindicate
thatapartofthecurrent
assetsmust,inthefinalanalysis,befinancedbynon-currentfunds.
