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 degree of total leverage equation shows the total leverage of a company. You can find the DTL either by multiplying the degree of operating leverage and degree of financial leverage or by dividing the percentage change in earnings per share by the percentage change in sales -- both produce the same result. When the result is greater than 1, the company has total leverage.