Defence industry debt levels

For comparison purposes, I pulled out all the defence companies on the LSE that I could find, and compared their latest reported net debt to revenues reported in the finals. Here are the ratios:


NDEBT/
REV     PER
AVON   9.1%   10.7
BA.    6.9%    7.7
CHG   41.7%    4.7
CHRT  CASH     7.9
MAN    7.5%    4.0
QQ.    8.3%   12.8
ULE    9.2%   12.6

The standout here is CHG – which has debt far above the industry norm, and may go some way to explain its low rating by the investing community. Admittedly, the profit warnings and the bid abandonment don’t help, either.

Looking at Stockopedia, I see that although CHG passed the Phil Fisher Growth screen, it was also highlighted in 2 shorting screens. Only one other defence company – BA. – made it onto a short screen.

Happy investing, all.

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About mcturra2000

Computer programmer living in Scotland.
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