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When Is Sleepwalking Most Likely to Occur

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When is sleepwalking most likely to occur


Definitions:

Return on Assets

A financial ratio that indicates how profitable a company is relative to its total assets by dividing net income by total assets.

Return on Debt

A measure of how much profit a company generates for every dollar of debt, indicating the efficiency of using borrowed funds.

Total Equity

The net value of a company, determined by subtracting total liabilities from total assets.

Degree of Financial Leverage

This metric quantifies the sensitivity of a company's earnings per share to its fluctuations in operating income, based on the structure of its capital.

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