Page 29 - FINAL CFA I SLIDES JUNE 2019 DAY 9

Session Unit 8:
31. Non-Current (Long-Term) Liabilities, p.272

tanties

Leverage declined in

20X9 using all three
measures, mainly as a
result of an increase in
shareholders’ equity. On
the other hand, both

coverage ratios declined
in 20X9 as a result of
higher interest expense.

One possible explanation
for the increase in
interest expense, given
lower leverage, is that
interest rates are

increasing.