Companies With The Highest Debt In Canada

Managing debt is fundamental to corporate finance in today’s competitive and fast-paced business environment. Companies often need to take on debt for various reasons, such as to fund expansion and operations or to pursue new business opportunities.

While carrying debt can benefit a company’s growth, high debt levels relative to revenues or market capitalization can pose risks. This article reviews the top ten companies with the highest debt in Canada as of 2023.

Companies With The Highest Debt In Canada 2023

10. Emera

Emera, an energy conglomerate based in Halifax, Nova Scotia, starts our list. With a market capitalization of $11.118 billion, the company has a total debt of $14.71 billion. Despite generating a revenue of $6.095 billion, the company’s debt significantly outweighs its market value.

9. Nutrien

Nutrien, the world’s largest provider of crop inputs and services, has a market cap of $41.085 billion and a total debt of $15.254 billion. With revenue of $36.334 billion, Nutrien’s debt is slightly less than half of its revenue.

8. George Weston

George Weston Limited, a Canadian food processing and distribution company, has a total debt of $15.822 billion. With a market capitalization of $16.207 billion and revenue of $43.983 billion, their debt makes up a considerable portion of their total market value.

7. Telus

Telus, a Canadian telecommunications company, has a market capitalization of $26.041 billion. The company’s total debt is $20.62 billion, significantly surpassing its annual revenue of $14.396 billion.

6. Bausch Health Companies

With a market capitalization of $4.671 billion, Bausch Health Companies, a multinational specialty pharmaceutical company, has a total debt of $20.653 billion. Considering its revenue of $8.15 billion, the company’s debt burden is more than twice its revenue.

5. Fortis

Fortis, a leader in the North American regulated electric and gas utility industry, has a market capitalization of $20.882 billion and a total debt of $22.423 billion. With revenue of $8.752 billion, the company’s debt significantly outstrips its revenue.

4. BCE

BCE is one of Canada’s second-largest communications companies. With a market cap of $39.892 billion, the company has a total debt of $25.665 billion. Despite a considerable revenue of $18.509 billion, the company’s debt is substantial.

3. Rogers Communications

Rogers Communications, a diversified public Canadian communications and media company, has a market capitalization of $22.609 billion. The company’s total debt is $28.65 billion, dwarfing its revenue of $11.853 billion.

2. TC Energy

TC Energy is one of North America’s largest energy infrastructure companies. It has a market cap of $39.187 billion and a total debt of $47.841 billion. Despite generating a revenue of $11.696 billion, its debt far outweighs its earnings.

1. Enbridge

Enbridge is a leader in energy transportation and distribution in North America and internationally. With a market capitalization of $75.005 billion, Enbridge has a whopping total debt of $61.205 billion. Despite having the highest revenue on the list at $38.18 billion, the company’s debt is substantial and tops the list of companies with the highest debt in Canada in 2023.

While high debt can cause concern, it’s important to remember that many factors play into a company’s financial health. Debt can be a strategic tool for expansion and growth when managed correctly.

It’s also worth noting that large corporations typically have different strategies and thresholds for managing debt than smaller businesses or individuals. Therefore, while the companies listed here carry significant debt, they also continue to operate and, in many cases, thrive.

Companies With The Highest Debt In Canada 2023

1. Enbridge
2. TC Energy
3. Rogers Communications
4. BCE
5. Fortis
6. Bausch Health Companies
7. Telus
8. George Weston
9. Nutrien
10. Emera

FAQ: Canadian companies with the highest debt in 2023:

What company has the highest debt in Canada in 2023?

Enbridge has the highest debt in Canada in 2023, with a total debt of $61.205 billion.

What is the market capitalization of Enbridge?

Enbridge’s market capitalization will be $75.005 billion in 2023.

What is the total debt of the telecommunications company Telus in 2023?

In 2023, Telus has a total debt of $20.62 billion.

How is company debt beneficial for growth?

Companies often use debt to fund expansion, operations, or new business opportunities. When managed correctly, this debt can be a strategic tool for growth.

Is high debt always a risk for companies?

While high debt can pose risks, it’s important to remember that many factors play into a company’s financial health. Larger corporations typically have different strategies and thresholds for managing debt than smaller businesses or individuals. Therefore, even if a company carries significant debt, it can still operate and, in many cases, thrive.

Which Canadian company had the lowest debt among the top 10 in 2023?

Among the top 10, Emera had the lowest total debt of $14.71 billion in 2023.

How does a company’s total debt relate to its revenue?

The total debt of a company is an important financial indicator. Compared to the company’s revenue, it can give insights into its leverage and ability to pay back its debt. If a company’s debt significantly outstrips its revenue, it could indicate potential financial distress.