Financial Gearing Ratios Flashcards
1
Q
Asset Cover Ratio
A
Total Assets - Current Liabilities
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Loans Payable
2
Q
Interest Cover
A
Op profit + interest / other receivables
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Interest Payable
3
Q
Debt to Equity Ratio
A
Debt + preference share capital
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Equity shareholder funds
4
Q
Net debt to equity ratio
A
Debt + preference share capital - cash
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Equity shareholder funds