I know it's profit margin, retention ratio, asset turnover, and LEVERAGE but every book (and website) says "and "T" for leverage!" Mr. Higgins, who coined the term "PRAT model," and Sesame Street seem to be at odds. Not a big deal, but anyone know? "Total ______"?

Wow! Thanks for that! That beg. equity helped me more than the "T" :)>-

Total Leverage? Also remember to use beginning of period shareholder's equity because retained earnings are not available until the end of the period.

A CFA Level 2 Discussion About What's The "T" In PRAT Stand For?

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This topic has 2 replies, 2 voices, and was last updated Apr-171:50 am by ykilstein.

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- ykilstein
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  22 Apr 2017 at 1:36 am
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  I know it’s profit margin, retention ratio, asset turnover, and LEVERAGE but every book (and website) says “and “T” for leverage!” Mr. Higgins, who coined the term “PRAT model,” and Sesame Street seem to be at odds.
  
  Not a big deal, but anyone know? “Total ______”?
- ykilstein
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  22 Apr 2017 at 1:50 am
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  Wow! Thanks for that! That beg. equity helped me more than the “T” :)>-
- bceagles
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  22 Apr 2017 at 1:40 am
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  Total Leverage? Also remember to use beginning of period shareholder’s equity because retained earnings are not available until the end of the period.
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