Now’s The Time For S&P 500 Companies Lever Up: Goldman

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Mani
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S&P 500 (INDEXSP:.INX) companies should enhance leverage to arrest their declining margins and return on equity, believes Goldman Sachs Group Inc (NYSE:GS). Stuart Kaiser and team at Goldman Sachs think that by taking advantage of the prevailing low financing costs, S&P 500 companies should return asset / equity leverage to its 10-year average. Leverage – an easy way to protect ROE Goldman Sachs analysts have poured over 30 years of data and concluded that stocks with weaker balance sheets have steadily outperformed peers with safer balance sheets. Historically S&P 500 (INDEXSP:.INX) companies have increased debt (relative to sales, enterprise value and EBITDA)…

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Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports