I am looking at the formula in schweser: (Cur. Liab + Long Term debt) / (Cur Liab+LT debt+Minority Interest+Common and Preferred Equity) Isn’t the denominator basically equal to total assets?
i think it is better to go by the schweser formular. it is the same in the text. BEcause of the several items that can be embedded in equity from pensions, translations, wrtiedowns/write ups etc… it can be a loaded tricky to use assets. just stick to this long denominator. additionaly it may be useful to note the difference b/n this and the LTD/capitalisation formular. can be tricky under exam conditions. i hope i hv helped