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).
But overusing leverage leaves the company at risk during a recession or a downturn, particularly in a cyclical industry. Debt ratios are a good starting point to keep track of a company's ability to withstand such periods. The debt-to-equity ratio is the most commonly used metric and appears on most financial websites. The simple formula for the calculation is: Debt to Equity = Total Debt / Shareholder's Equity.