debt ratio industry average

Why term of the debt ratios of capital / differrent SO between Kellogg (K), Merck (MRK) and General Motors (GM)?

DATA: Kellogg's: 1.48 industry average, 0.8 Merck: 0.32 industry average: 0.35 MM: 19.58! , Industry Average: 1.23 So, how interpret the evolution of these relationships in the past two years? Kellogg: Merck 1.62 to 1.48 0.29 to 0.32 mm: 10.98 to 19.58 I think this has to do with the proportion materials (marketable) assets, the threat of financial distress costs, an industry leader, etc. .. I will look at everything I do now, but any help or ideas of financial specialists would be welcome … Thanks … Student Finance …

Your data does not say anything about why they have those reports. Kellogg's and Merck are near the industry average can not be considered normal, while GM has historically increased 10-20 times equity. most common is the debt plus risky, hence companies have a low risk actually absorb more debt to shareholder value can be maintained and improved. In general, utilities and iron roads are monopolies and have a high debt. Companies that maintain constant shareholders to maintain their ratio of equity / debt value. The problem with GM is a prestigious competition racing season for the Japanese and their equ ity has long been eroded several times and brought back several times, making them do things that others do not have to do in their respective areas of activity ..