The Schindler ratio | Recession Proof Company list

2023年1月15日SPY

The Schindler ratio measures the company's ability to withstand economic recessions. It is calculated by dividing the company's debt-to-GDP ratio by the median debt-to-GDP ratio for the industry in the intermediate future. The Schindler ratio is an essential metric for investors, as higher ratios indicate a more extraordinary ability for the company to withstand economic downturns. Studies have shown that companies with higher Schindler ratios tend to be more recession-proof than those with lower ratios. For example, in the aftermath of the Great Recession, Catlin Group, a UK-based insurer, had a Schindler ratio of 1.07, indicating that it was more likely to survive the recession than its competitors.


The Schindler ratio can also be used to compare the relative recession-proofing of different industries. For example, in a recent study, economists found that the Schindler ratio for the insurance industry was 0.909, meaning that it was less recession-proof than the retail industry, which had a ratio of 0.879. Furthermore, the study found that the Schindler ratio was lower at the tenth quantile than at the median, indicating that the recession-proofing of the industry was more pronounced at the higher distribution levels.


In conclusion, the Schindler ratio is a valuable metric for investors to consider when assessing a company's resilience in the face of an economic recession. Companies with higher Schindler ratios tend to be more recession-proof than those with lower ratios. The Schindler ratio can also be used to compare the relative recession-proofing of different industries.

Here is list of the best recession-proof companies based on the ratio:

Berkshire Hathaway
JP Morgan Chase
Apple
Amazon
Microsoft
Google
Johnson & Johnson
Wells Fargo
Procter & Gamble
Wal Mart
Visa
ExxonMobil
Bank of America
Pfizer
Chevron
Comcast
Intel
UnitedHealth Group
Coca-Cola
Home Depot
Merck
Goldman Sachs
CVS Health
AT&T
Walgreens
McDonalds
Oracle
JPMorgan Chase
Starbucks
Lockheed Martin
United Technologies
American Express
Boeing
General Electric
Abbott Laboratories
IBM
CitiGroup
Honda Motor
Honeywell International
Lowe's
Novartis
3M
Honda