studyn

Oh yes! I remember getting confused between these two as well back in the day.

bchadwick Wrote:
-------------------------------------------------------
> It's important to realize that the financial
> leverage ratio is NOT the same as the debt/equity
> ratio, even if it addresses the same concept (how
> much debt is in the capital structure). (I messed
> this up a few times when I was studying for L1 as
> well).
>
> Financial Leverage Ratio is what goes into the
> Dupont Model. A/E = (D/E+1)