The below table shows various financial statement ratios in aggregate for the CSI 300 excluding all financial and utility companies. Here are a few highlights:
- Total liabilities as a percent of equity increased by 14% to 162%, an 80% increase since 2002
- Financial leverage increase to 2.7x, a 42% increase since 2002
- Inventories increased again as a percent of total capital and sales
- Inventories as a percent of total capital have increased 105% since 2002
- Net profit margin and cash flow from operations margin remained near the decade lows
Just when you thought Chinese companies couldn't get more levered, they have, and now it's in the face of a rather noticeable deterioration in the domestic economic situation.