Enron Corp. - University of California | Office of The President

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
Enron Corporation
Debt to Equity Ratio
1997 1998 1999 2000
As reported As restated
421. The restatement adversely affected these debt and earnings ratios significantly:
1997 1998 1999 2000
Debt to Equity
As reported 44.6% 41.9% 38.5% 40.9%
As restated 48.3% 44.8% 42.1% 44.3%
Ratio of Earnings to Fixed Charges
As reported 1.02 2.08 2.29 2.34
As restated .88 1.94 2.03 2.23
422. The amount of the restatement, however, was just the tip of the iceberg. The Enron
Defendants engaged in many other egregious manipulations of Enron's financial statements which
were not part of the restatement. As Accounting Malpractice.com noted on 2/22/02:
Each passing week raises a new concern about not only the original financial
reporting but also the veracity of the restatement itself. The emerging question is not
whether a more conservative restatement would have reflected smaller profits, but
whether a proper restatement would have reflected any profits from 1997 and
forward?
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