# Book Leverage¶

function

`frds.measures.corporate.`

`book_leverage`

`(`

`data`

`)`

Book leverage

The book leverage is defined as the amount of debts scaled by the firm's total debts plus common equity.

\text{Book Leverage}_{i,t} = \frac{DLTT_{i,t}+DLC_{i,t}}{DLTT_{i,t}+DLC_{i,t}+CEQ_{i,t}}

where DLTT is the long-term debt, DLC is the debt in current liabilities, and CEQ is the common equity, all from Compustat Fundamentals Annual `WRDS.COMP.FUNDA`

.

Note

If CEQ is missing, the book leverage is treated as missing.

If `data`

is a Fundamentals Quarterly dataset:

\text{Book Leverage}_{i,t} = \frac{DLTTQ_{i,t}+DLCQ_{i,t}}{DLTTQ_{i,t}+DLCQ_{i,t}+CEQQ_{i,t}}

Parameters

`data`

(Union[Funda, Fundq]) — Input dataset

Returns (Union[pd.Series, None])

Book leverage

Last update: June 3, 2021