Editing Royal Bank of Canada (section)

== Capital Structure ==
{| class="wikitable"
!'''Debt  Ratios'''
!'''FY18'''
!'''FY19'''
!'''FY20'''
!'''FY21'''
!'''FY22'''
|-
|Debt Ratio
|0.94
|0.94
|0.95
|0.94
|0.94
|-
|Debt to Equity Ratio
|3.11
|3.14
|3.85
|3.23
|3.17
|-
|Long-term Debt to  Capitalization
|0.35
|0.30
|0.39
|0.41
|0.39
|-
|Total Debt to Capitalization
|0.77
|0.77
|0.81
|0.78
|0.77
|-
|Interest Coverage
|0.97
|0.69
|0.95
|2.39
|1.05
|-
|Cash flow to Debt Ratio
|0.07
|0.10
|0.05
|0.06
|0.24
|-
|Equity Multiplier
|16.69
|17.09
|18.72
|17.28
|17.72
|}
{| class="wikitable"
! colspan="7" |Tax Rate
|-
| colspan="2" |
|FY18
|FY19
|FY20
|FY21
|FY22
|-
|Historical Tax Rate
|Effective Tax Rate from B/S
|21.10%
|19.10%
|20.50%
|22.20%
|21.40%
|-
|Selected Tax Rate
| colspan="5" |
|'''20.86%'''
|}
{| class="wikitable"
! colspan="7" |Cost of Debt (Effective Interest Rate Method)
|-
|
|
|FY18
|FY19
|FY20
|FY21
|FY22
|-
|Interest Expense
|From I/S
|15,069
|21,584
|14,048
|8,143
|18,054
|-
|Total Debt
|From B/S
|248,466
|262,192
|333,977
|318,861
|342,703
|-
|Effective Interest Rate
|
|6.06%
|8.23%
|4.21%
|2.55%
|5.27%
|-
|Average Effective Interest  Rate
| colspan="5" |
|'''5.27%'''
|}
[[File:RBC.png|thumb|463x463px]]
{| class="wikitable"
! colspan="2" |'''Weighted Average Cost of Capital'''
|-
|Share Price
|130.16
|-
|Beta
|0.78
|-
|Diluted Shares Outstanding
|1,406.00
|-
|Cost of Debt
|5.27%
|-
|Tax Rate
|20.86%
|-
|After Tax Cost of Debt
|4.17%
|-
|Risk Free Rate
|3.53%
|-
|Market Risk Premium
|14.86%
|-
|Cost of Equity
|15.10%
|-
|Total Debt
|342,703.00
|-
|Total Equity
|                                     183,004.96
|-
|Total Capital
|525,707.96
|-
|'''Debt Weighting'''
|'''65.19%'''
|-
|'''Equity Weighting'''
|'''34.81%'''
|-
|'''WACC'''
|'''7.97%'''
|}
RBC has a credit rating of Aa- which is investment grade. It has maintained an interest coverage ratio of 0.97 - 2.39 from FY18-FY22 indicating that it has more interest expenses that EBIT. The debt/equity ratio ranged from 3.11 - 3.85 from FY18-FY22 indicating that RBC is a highly levered firm. The Weighted Average Cost of Capital is 7.97%.