Total Debt

CFA Level II
#1

is Total Debt = LT Debt only ort LT + ST Debt? I think i’ve seen variations but i think its just LT Debt and wanted to confirm. thoughts?

#2

For ratios, Total = LT + Current Liabs

#3

i believe they usually specificy, but if not, assume current and LT

#4

So D/E is debt to equity, as normally found from A - E = L If it’s total debt to equity, would it be current long-term and short-term debt (excluding other liabilities) over equity?

#5

Look at Page 4 on Financial Reporting and Analysis of your CFAI Book. Total debt equals “The total of interest bearing debt short term and long term debt, excluding liabilities such as Accrued expenses and accounts payable”

#6

Wow thanks for pointing that page out. BTW Schweser is messing with my head regarding this issue. There are instances where Q Bank says Total Debt is simply A-E!

#7

dlpicket Wrote: ------------------------------------------------------- > For ratios, Total = LT + Current Liabs no, it wouldn’t include any non-interest bearing liabilities

#8

Thanks. I’m trying to recall which chapters we applied this definition of total debt to…

#9

ok, so i will take Total Debt to be LT Debt + any interest bearing debt. Ali, this formula could be used in fixed income or FSA synthesis etc.

#10

Also remember operating leases for the purpose of the synthesis chapter

#11

Total Debt to Capitalization is one that uses all current liabilities (even non-interest bearing) Don’t have the FRA book with me at the moment though.

#12

dlpicket Wrote: ------------------------------------------------------- > Total Debt to Capitalization is one that uses all > current liabilities (even non-interest bearing) > > Don’t have the FRA book with me at the moment > though. Yes. That’s for credit analysis purposes I believe.

#13

Thanks for the page reference, CLT2. This is very helpful!

#14

Nice thread, this is actually one of my confusing topics