Flashcards
Gearing Ratios
Cards in this deck (3)
- 1EQUITY GEARINGPrior charge Capital
(L-term Capital except Equity)
--------------------------------------------- x 100
Equity
It measures the proportion of a Co' borrowed funds to its equity. It shows the financial risk of the Co' - 2TOTAL GEARINGPrior Charge Capital
(L- term Capital except Equity)
-------------------------------------------- x 100
Total L-term Capital
(L- term Capital + Equity) - 3INTEREST COVERProfit before Interest and Tax
-------------------------------------------- x 100
Debt Interest
It measures the ability of the Co' to meet its interest obligations
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- ACCA Financial Management - F9 (Financial Management Function ) Flashcards on Gearing Ratios, created by Christina Michaelidou on 27/10/2017.
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- Christina Michaelidou
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