EXPLANATORY NOTES

Registrations

Data cover all registrations which became effective under the Securities Act of 1933 during the period covered. Issues are included as of the effective date, with the exception of those subject to post-effective amendment to report terms of offering. These are included as of the date of the post-effective amendment.

The classification primary corporate offerings refer to registered offerings for immediate cash sale where the proceeds of the offering are at the disposal of the issuing corporations. Secondary offerings are registrations of outstanding securities where the proceeds of the issue do not accrue to the issuing company. The dollar amount for both type offerings is based generally on the initial offering price. The classification unseasoned common stock includes initial offerings by companies registering common stock for the first time under the Securities Act of 1933, whereas seasoned common stock offerings are registrations by companies previously having securities registered under the 1933 Act. Other equity securities classification consists of offerings of certificates of participation or beneficial interests, warrants or options, voting trust certificates and other equity securities.

Issues to be offered for extended cash sale include investment company issues, and all offerings of employee savings and stock option plans. The classification foreign government is shown separately, whereas registrations by foreign corporations are

included in with corporate offerings. Investment company securities include open-end, face-amount and unit trust offerings. Closed-end securities are included in primary corporate offerings.

Issues registered for other noncash purposes such as exchange transactions, securities given for property or services, or reserved for conversion are generally valued at the current market prices.

In order to eliminate double counting, the number of issues are shown for primary and secondary offerings only. However, effective registrations cover all cash offerings, noncash offerings, and offerings for extended cash sale.

Dollar amounts have been rounded and will not add to totals.

PRIMARY CORPORATE REGISTRATIONS UNDER THE SECURITIES ACT OF 1933, BY METHOD OF DISTRIBUTION TO THE PUBLIC

PRIMARY CORPORATE REGISTRATIONS UNDER THE SECURITIES ACT OF 1933, BY METHOD OF DISTRIBUTION TO THE PUBLIC
NUMBER OF ISSUES

WORKING CAPITAL OF NONFINANCIAL U.S. CORPORATIONS

September 30, 1975

The net working capital of non financial U.S. corporations increased $10.3 billion during the first nine months of 1975; this compares with a $17.2 billion rise in the corresponding period of 1974. The $2.8 billion increase during the third quarter of 1975 compares with a $5.6 billion gain in the July-September period last year. Net working capital, which represents corporate investment in current assets in excess of current liabilities was approximately $272 billion at the end of September, 1975.

Through the first nine months of 1975 total current assets recorded an increase of approximately $4 billion, while current liabilities declined almost $6 billion. In contrast during the July-September period total current assets rose slightly more than $13 billion and current liabilities increased more than $10 billion.

In the third quarter of 1975, accounts receivable rose nearly $10 billion and other current assets increased slightly less than $2 billion. Partially offsetting these gains was an approximately $2 billion decrease in inventories. Inventory reductions have totaled slightly more than $8 billion during the January-September period.

Also on the asset side, cash balances gained almost $2 billion in the third quarter of 1975, while holdings of U.S. Government securities increased approximately $1.5 billion. The ratio of these two items combined to total current liabilities--a frequently used measure of corporate liquidity--was .18 at the end of September, 1975, unchanged from the previous quarter and compares with .16 a year earlier. Another measure of corporate liquidity, the current ratio (the ratio of total current assets to total current liabilities) was 1.61 at the end of September as pared with 1.62 in the second quarter of 1975 and 1.58 a year earlier.

On the liabilities side of the balance sheet, total current liabilities increased approximately $10 billion in the third quarter of 1975. Accounting for this rise were gains of nearly $5 billion in other current liabilities, $2 billion in Federal income tax liabilities and $3 billion in accounts payable. This latter gain was constrained by a significant effort to reduce short-term bank debt.

Besides the approximately $3 billion increase in corporate working capital in the third quarter of 1975, nonfinancial U.S. corporations invested almost $26 billion for additions to plant and equipment within the United States and nearly $9 billion in other noncurrent assets including residential structures and fixed assets of foreign subsidiaries. To finance these requirements, they generated nearly $28 billion from internal sources--depreciation and retained earnings--or approximately 75 percent of the required funds as compared to 44 percent a year earlier. These corporations raised

$5.4 billion through net new securities financing--sales minus retirements-of which $1.7 billion were from net new stock issues and $3.7 billion from net sales of debt securities. The balance of the financing, approximately $5 billion, was provided by long-term bank and mortgage loans and other miscellaneous sources.

Technical Notes

1) Year-end data for this series are based on Statistics of Income data through 1971, which cover virtually all corporations in the United

Statistics of Income data may not be strictly compared from year to year because of changes in the tax laws, basis for filing returns, and processing the data for compilation purposes. All interim quarterly data and year-end estimates after 1971, are based on data compiled from many other sources, including data on corporations registered with this Commission.

2) The item, cash on hand and in banks, includes time certificates of deposit.

3) The item, U.S. Government securities, includes Federal agency issues.

4) Receivable from and payable to the U.S. Government do not include amounts offset against each other on corporations' books or amounts arising from subcontracting which are not directly due from or to the U.S. Government. Wherever possible, adjustments have been made to include U.S. Government advances offset against inventories on corporations' books.

5) The item, other current assets, includes marketable investments (other than Government securities and time certificates of deposits) as well as sundry current assets.

6)

The current ratio is total current assets to total current

liabilities.

7) The quick ratio is the summation of cash and U.S. Government securities to total current liabilities.

8) Figures are rounded and will not necessarily add to totals.

The accompanying table contains the aggregate estimates of current assets and current liabilities of nonfinancial U.S. corporations.