Yahoo Home 22 Most Indebted Companies in the World in 2022
In this article, we will be taking a look at the 22 most indebted companies in the world in 2022. To skip our detailed analysis, you can go directly to see 5 Most Indebted Companies in the World in 2022.
When companies want to raise cash for their businesses, there are two main ways to go about this. The first one is to issue equity and get investment in return. This is why most major companies opt for IPOs or initial public offerings, where shares of the company are issued for a set price initially, which is then dictated by market dynamics. Other times, companies issue right shares which are shares issued to existing shareholders at a specified price. When people start a company, they generally require investment to scale up their ambitions, and these companies are private at the time. They then invite investors and pitch their project and their company and offer a part of their company in exchange for the investment. The best kind of example for this is the TV show Shark Tank, where people who have started companies pitch their idea and financials to get major investors to invest in their companies while also providing expertise gained from decades of experience.
Another way to raise money is debt. Debt involves borrowing money, often from banks, to fund operations and paying it back based on a specific term along with interest. There are several reasons that companies may opt for debt rather than equity with the primary one being that taking on debt does not lead to dilution of ownership, thus ensuring that profits stay within the company rather than losing out in the form of interest and principal payments. Debt also helps increase tax savings as interest is an allowable tax expense and hence lowers the profit calculation for tax purposes. Further, debt is generally considered to have a lower finance cost as opposed to equity. Remember, raising equity doesn't mean that there isn't any cost; shareholders are investing as they want the best possible return on their money and so the cost of equity is definitely very real. Also, equity means that shareholders get returns forever while debt is for a limited time period and after the payment of the principal along with interest, no further payments have to be made. For example, if you issue 1% of equity for $100,000 thereby valuing your company at $10 million, the shareholders of the issued equity will be owed 1% forever, while if you got debt of $100,000 for a period of 5 years at an annual interest rate of 10%, with principal paid off in 5 installments at the end of each year, you would have paid back $130,000 in 5 years.
Some of the biggest companies in the world are also some of the most indebted companies in the world. The total debt of the 22 most indebted companies globally is more than $2.5 trillion, bigger than most economies in the world. To determine these companies, we considered the total debt of each operation based on its latest annual report, with the data being taken from Yahoo Finance. Where the numbers were in a currency other than USD, we used the latest exchange rates for conversion.
Image by Steve Buissinne from Pixabay
22. Electricité de France
Total debt of the company in the latest financial year (in millions): $60,505
Electricité de France is an electric utility company in France which is majority owned by the state. It is one of the few utility companies in the world to operate nuclear reactors.
21. Duke Energy Corporation (NYSE:DUK)
Total debt of the company in the latest financial year (in millions): $68,213
Duke Energy Corporation (NYSE:DUK) is an electric power and natural gas holding company which is headquartered in North Carolina and serves multiple states in the country.
20. Enel SpA
Total debt of the company in the latest financial year (in millions): $74,465
Enel is owned by the Government of Italy and is one of the biggest manufacturers of gas and electricity in the world, and the biggest in Italy.
19. Oracle Corporation (NYSE:ORCL)
Total debt of the company in the latest financial year (in millions): $75,859
Oracle Corporation (NYSE:ORCL) has been one of the biggest software companies in the world for several years now. Currently, Oracle Corporation (NYSE:ORCL) provides enterprise resource planning software, human capital management software and customer management software management, among others.
18. Hyundai Motor Company
Total debt of the company in the latest financial year (in millions): $82,645
Hyundai Motor Company is a South Korean automotive manufacturer and also owns close to 34% of KIA Corporation.
17. Bayerische Motoren Werke Aktiengesellschaft
Total debt of the company in the latest financial year (in millions): $87,920
BMW is one of the biggest manufacturers of luxury cars and motorcycles in the world. The German giant is also one of the most indebted companies in the world.
16. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Total debt of the company in the latest financial year (in millions): $88,830
Anheuser-Busch InBev SA/NV (NYSE:BUD) is the biggest alcohol manufacturer in the world and currently owns 630 beer brands in around 150 countries. In October 2015, Anheuser-Busch InBev SA/NV (NYSE:BUD) purchased South African multinational SABMiller in an all-cash deal.
15. Shell plc (NYSE:SHEL)
Total debt of the company in the latest financial year (in millions): $89,086
Shell plc (NYSE:SHEL) is among the biggest oil and gas companies in the world, which recently moved its headquarters from the Netherlands to the United Kingdom. Shell plc (NYSE:SHEL) is integrated in every area of the oil and gas industry, from exploration and production to power generation and trading.
14. Charter Communications, Inc. (NASDAQ:CHTR)
Total debt of the company in the latest financial year (in millions): $91,830
Charter Communications, Inc. (NASDAQ:CHTR) is one of the many telecommunications companies in our list. In terms of subscribers, Charter Communications, Inc. (NASDAQ:CHTR) is the second-largest cable operator in the United States. Charter Communications, Inc. (NASDAQ:CHTR) currently has around 32 million customers in 41 states.
13. Mercedez-Benz Group
Total debt of the company in the latest financial year (in millions): $93,849
The automotive manufacturers continue to make their presence felt in the list of the most indebted companies in the world and Mercedez-Benz Group, the manufacturer of luxury German cars, continues the trend.
12. Comcast Corporation (NASDAQ:CMCSA)
Total debt of the company in the latest financial year (in millions): $94,850
Comcast Corporation (NASDAQ:CMCSA) is the second-biggest cable television and broadcasting company in the U.S., mainly because of a lack of alternatives in most locations in the U.S. Comcast Corporation (NASDAQ:CMCSA) is also the third largest home telephone services provider in the country.
11. T-Mobile US, Inc. (NASDAQ:TMUS)
Total debt of the company in the latest financial year (in millions): $106,011
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the biggest wireless network operators in the U.S. In 2020, T-Mobile US, Inc. (NASDAQ:TMUS) completed a merger with Spring Corporation. T-Mobile US, Inc. (NASDAQ:TMUS) currently has around 75,000 employees.
10. General Motors Company (NYSE:GM)
Total debt of the company in the latest financial year (in millions): $110,391
General Motors Company (NYSE:GM) is the biggest automotive manufacturer in the U.S. In March 2009, General Motors Company (NYSE:GM) had to be bailed out by the government after having to declare bankruptcy due to the financial crisis.
9. Amazon.com, Inc. (NASDAQ:AMZN)
Total debt of the company in the latest financial year (in millions): $116,395
Amazon.com, Inc. (NASDAQ:AMZN) is the largest online retailer in the world. Engaged in several businesses including e-commerce, cloud computing, artificial intelligence, consumer electronics and digital media among others, Amazon.com, Inc. (NASDAQ:AMZN) recorded nearly $470 billion in revenue in 2021 with an operating income of just under $25 billion.
8. Apple Inc. (NASDAQ:AAPL)
Total debt of the company in the latest financial year (in millions): $120,069
The most valuable company in the world, Apple Inc. (NASDAQ:AAPL) may have a lot of debt but its debt to capital ratio is still very healthy. Apple Inc. (NASDAQ:AAPL) also recorded revenue of more than $365 billion in 2021 alone and is the second-biggest mobile manufacturer in the world after Samsung.
7. Ford Motor Company (NYSE:F)
Total debt of the company in the latest financial year (in millions): $139,485
Ford Motor Company (NYSE:F) is one of the biggest automotive manufacturers in the U.S. and the world. Selling cars under the Ford and Lincoln Brands, Ford Motor Company (NYSE:F) was the only company among the top three automotive companies in the U.S. to not require a government bailout in the 2008 recession, showing that while it may have a lot of debt, it is able to manage it well.
6. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Total debt of the company in the latest financial year (in millions): $156,189
Deutsche Bank Aktiengesellschaft (NYSE:DB) is the biggest bank in Germany and is one of the biggest banks in Europe. Deutsche Bank Aktiengesellschaft (NYSE:DB) has a presence in close to 60 countries and is the most indebted bank in the world.
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Disclosure: None. 22 most indebted companies in the world in 2022 is originally published at Insider Monkey.
