Long-term debt to working capital

Graham’s solvency test: borrowings against the cushion that covers them.

Formula	Long-term debt ÷ (current assets − current liabilities)
Companies reporting it	258 of 573
Median	2.30x
Middle half	0.93x – 6.84x
Range	0.00x – 62.53x

When it lies. Undefined where working capital is negative, which is normal for retailers and utilities that collect before they pay. Blank rather than alarming, for those.

By sector

Sector	n	Median	25th	75th
Real estate	1	13.50x	13.50x	13.50x
Utilities	11	12.01x	2.15x	18.37x
Financial services	9	6.84x	2.01x	11.20x
Communications	18	4.36x	1.70x	8.48x
Consumer staples	21	4.23x	0.93x	8.11x
Industrials	49	3.10x	0.91x	6.41x
Energy	24	3.03x	1.53x	5.98x
Health care	32	2.33x	1.04x	4.63x
Consumer discretionary	21	1.98x	1.02x	7.73x
Materials	41	1.57x	0.96x	2.56x
Technology	30	1.08x	0.59x	4.19x
not classified	1	0.00x	0.00x	0.00x

Highest long-term debt to working capital

#	Ticker	Company	Sector	Long-term debt to working capital
1	BRN	Barnwell Industries	Energy	0.00x
2	UAMY	United States Antimony	Materials	0.00x
3	OCG	Oriental Culture Holding	not classified	0.00x
4	AMR	Alpha Metallurgical Resources	Energy	0.01x
5	ESLT	Elbit Systems	Industrials	0.01x
6	ASPI	ASP Isotopes	Materials	0.02x
7	DPZ	Dominos Pizza	Consumer staples	0.04x
8	NVDA	Nvidia	Technology	0.08x
9	IOTR	iOThree	Communications	0.09x
10	TDTH	Trident Digital Tech Holdings	Industrials	0.09x
11	LUD	Luda Technology Group	Materials	0.10x
12	ZYBT	Zhengye Biotechnology Holding	Health care	0.12x
13	WS	Worthington Steel	Materials	0.13x
14	CTSH	Cognizant Technology Solutions	Technology	0.13x
15	RMD	Resmed	Health care	0.14x
16	NHC	National Healthcare	Health care	0.16x
17	CXDO	Crexendo	Communications	0.16x
18	WSO	Watsco	Industrials	0.16x
19	FIX	Comfort Systems Usa	Industrials	0.19x
20	SND	Smart Sand	Materials	0.23x

Lowest

#	Ticker	Company	Sector	Long-term debt to working capital
258	DLX	Deluxe	Communications	62.53x
257	HPE	Hewlett Packard Enterprise	Technology	61.96x
256	POR	Portland General Electric	Utilities	59.01x
255	DGX	Quest Diagnostics	Health care	51.67x
254	NOG	Northern Oil & Gas	Energy	51.25x
253	STZ	Constellation Brands	Consumer staples	44.77x
252	GTN	Gray Media	Communications	41.01x
251	MSI	Motorola Solutions	Technology	37.90x
250	HRI	Herc Holdings	Consumer discretionary	35.49x
249	SON	Sonoco Products	Materials	32.21x

The other metrics

All metrics, and which ones to ignore