US Companies’ Debt Reaches Menacing Proportions

US companies are falling in a debt hole, according to S&P Global Ratings economists Andrew Chang and David Tesher.

The economists have analyzed financial metrics of about 2,000 US companies and found that last year the amount of outstanding debt has risen fifty times that of available funds.

The analysts note that the total amount of debt has increased by nearly $850 billion and was estimated at $6.6 trillion in 2015. Meanwhile, cash had only increased by 1 percent ($17 billion).

Another alarming factor is the distribution of debt and cash among the companies that were analyzed.  

"Removing the top 25 cash holders from the equation paints an even more concerning picture: Total debt rose $730 billion in 2015, while cash declined by $40 billion," Chang and Tesher wrote, as cited by Business Insider.

The economists mention that the $1.84 trillion of cash funds held by the 2,000 companies they covered is the largest amount ever. However, even this amount of cash can't distract one's mind from a much larger mountain of debt.

According to the S&P analysts, such worrying statistics was triggered by the companies' limitless investment appetites. The companies have opted to issue debt in order to fund operations or return cash to shareholders.

Many believe that this has led to a massive bubble in the bond market.