To accommodate surface mount technology, SMT, a completely new set of components was needed. New SMT outlines were required, and often the same components, e.g. ICs were sold in both traditional leaded packages and SMT packages.
The most well known financial leverage ratio is the debt-to-equity ratio. It is expressed as: Total debt / Total Equity. For example, if a company has $10M in debt and $20M in equity, it has a debt-to-equity ratio of 0.50 = ($10M/$20M).
See also debt management ratio, debt-to-equity ratio. Case Study Financial leverage results from utilizing debt to finance assets. The greater the ratio of funds contributed by creditors compared to funds contributed by stockholders, the greater a firm's financial leverage.Financial leverage magnifies changes in net income compared to changes in operating income.ase Study Financial leverage results from utilizing debt to finance assets. The greater the ratio of funds contributed by creditors compared to funds contributed by stockholders, the greater a firm's financial leverage.