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CPS2011 Dominique H. et al.
dimensions representing the data from year 2006 to 2016. For each dimension,
there are 27 observations from the 27 companies.
4. Discussion
The debt ratio construct provides a quick measure of the amount of debt
that the company has on its balance sheets compared to its assets. It shows
how much the company relies on debt to finance assets. Usually, the higher
the ratio, the greater the risk associated with the firm's operation. A low debt
ratio indicates conservative financing with an opportunity to borrow in the
future at no significant risk. For the sake of brevity we present results related
to the debt ratio construct; similar analyses have been conducted for the other
constructs.
Figure 3: Debt ratio SOM clusters
From Figure 3, we see that cluster 1 and cluster 16, at the two opposite
corners of the map, possess the largest number of observations; and 6 out of
14 clusters in between are empty. This indicates that the debt ratio in the
consumer discretionary sector presents a polarized situation. Both
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