CFA CFA Level 2 What’s the “T” in PRAT stand for?

What’s the “T” in PRAT stand for?

  • This topic has 2 replies, 2 voices, and was last updated Apr-17 by ykilstein.
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    • ykilstein
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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 ______”?

    • bceagles
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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.

    • ykilstein
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      Wow! Thanks for that! That beg. equity helped me more than the “T” :)>-

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