Gearing ratio Flashcards
1
Q
General ratio
What is a gearing ratio
A
This shows where the company gets its money from.
2
Q
General ratio
What is a gearing ratio formula
A
long term borrowings / shareholders equity x 100
3
Q
General ratio
What is a gearing ratio formula expressed as
A
A percentage
4
Q
General ratio
What does it mean if a gearing ratio is high
A
Depends more on borrowing. if 110% = high geared company.
5
Q
General ratio
What does it mean if a gearing ratio is low
A
Lowed geared company. Which means you get more money from shareholders than banks.
6
Q
General ratio
Gearing ratios between 25 and 50 are what
A
They are typical/ normal
7
Q
General ratio
Gearing ratios are 110% what does that mean
A
High - highly geared
8
Q
General ratio
Gearing ratios are 10% what does that mean
A
Low - low geared
