Finance And Accountancy Flashcards
1
Q
What is the gearing ratio?
A
Non- current liabilities/ capital employed x 100
Or
Non-current liabilities/ shareholder funds (total equity) x 100
2
Q
What is the debt to equity ratio technically?
A
Non current (debt)/ shareholder funds (equity) x 100.
3
Q
What is the gearing ratio?
A
Used to judge if a loan should be granted. Compares capital with long term loans
