The formula for Tobin’s Q :
My Q here is that how this is true? total asset value is not debt and equity ??!!!
The formula for Tobin’s Q :
My Q here is that how this is true? total asset value is not debt and equity ??!!!
Uh, yeah it is…
oh my …
xD
Perhaps OP’s view is that liabilities and debt aren’t the same thing (which is true).
However, CFA Institute takes a liberal view on this stuff, sometimes equating debt and liabilities.
All debts are liabilities , but some liabilities are “technically” not debt. Eg: unearned revenue , account payables.
These are most often relatively small. As S2000 suggests, the initial formula looks like a CFAI-approved approximation.
also, operating lease commitments…