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).
The formula for calculating a companyâs current ratio, then, is: Current Ratio = Current Assets / Current Liabilities. The current ratio is called âcurrentâ because, unlike some other liquidity ratios, it incorporates all current assets and liabilities.