Debt-servicing capacity of Norwegian listed non-financial companies
- Ida Nervik Hjelseth
- Economic Commentaries
The debt-servicing capacity of Norwegian non-financial companies listed on Oslo Børs has declined somewhat and is currently lower than the average for the past 14 years. Recently, the oil service sector in particular has experienced a marked decline in debt-servicing capacity and its debt-servicing capacity is now at a very low level compared with the historical average. Nevertheless, the level of the debt-servicing capacity of listed companies is overall well above the troughs in the early 2000s and during the financial crisis. This commentary reviews various ways of calculating debt-servicing capacity on the basis of different definitions of earnings and debt. Developments in corporate debt-servicing capacity are discussed in the light of the various calculation methods.
This series consists of short, signed articles on current economic issues and are only published on Norges Bank’s website.