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Financial Ratio Formula Sheet - Fuqua School of Business

faculty.fuqua.duke.edu

Financial leverage = Total (average) assets Total (average) shareholders’ equity Degree to which enterprise uses owners’ capital to finance assets. We’ll calculate this ratio using the averages of the balance sheet accounts to facilitate our ratio decomposition. Benchmark: EB (optimal capital structure), PG, HA Times interest earned (TIE) =

  Financial

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