Spike in 2019Q1 Leverage Ratios: The Impact of Operating Leases
Abstract: In this note, we show that the key driver of the 2019:Q1 increase in the leverage ratio appears to be a change in accounting rules – which requires the inclusion of operating leases as financial liabilities on U.S. corporations' balance sheets – and also provide a methodology for adjusting the leverage ratio to allow for cleaner historical comparisons.
File(s): File format is text/html https://www.federalreserve.gov//econres/notes/feds-notes/spike-in-2019Q1-leverage-ratios-20191213.htm
Part of Series: FEDS Notes
Publication Date: 2019-12-13