Are Current Liabilities included in Total Debt?

CFA Level II
#1

On sample #2 I think (this is from memory) there was a section for CL that wasn’t included in Total Debt on the Credit Analysis questions. However, on the 2006 exams they use CL in total debt on question 67 (this is schweser book #7) What am I missing here? T/G

#2

Just glanced at the solution. They defined total debt as long term debt, the current portion of long term debt and the lease debt equivalent. I’m thinking that you only include interest bearing debt in total debt ratios; the CL that was probably on the sample was A/P or something like that. Can anyone confirm?? I did get caught on a qbank question last night, you always include the current portion of LTD in LTD ratios as well.

#3

i would say they do

#4

This was the definition of total debt for the S&P credit ratio stuff. I think they define it differently.

#5

i think they’ll make it clear on the exam…if it’s total debt i would include lease equivalents and cl

#6

It wasn’t clear to me on the sample which they wanted. Also, it seemed that they used the same term differently in two questions. Even the CFA book wasn’t much help. T/G

#7

bump I am getting super confused with Total debt

#8

Going over questions earlier, i wondered the same thing…sometimes CL is in there, sometimes it isn’t. Seems like if it’s Total Debt to Cap…CL is included…but if it’s LTD to Cap, they don’t include it… Does anyone know for sure?