Investment Characteristics of Textbook Publishing Companies.

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    • Abstract:
      The article examines key issues and developments relevant to the investment characteristics of textbook publishing companies in the U.S. Financial data from twelve publicly owned companies were investigated to determine the basic investment characteristics of the textbook publishing industry. The result of the investigation shows that most companies employed the technique of longterm borrowing. Retained earnings were a regular and important source of financing, larger than for the typical industrial company while annual earnings showed a high degree of stability and averaged 10 per cent of assets. The favorable investment outlook for the industry was reflected in relatively high price-earnings ratios. Contributing factors were expanding school and college enrollments combined with increasing per capita expenditures. Growing profitability was indicated by the larger increases in net income and assets than in sales.