Solvency / Leaverage Ratios Flashcards
1
Q
Gearing ratio
A
Long-term debt
_________________________
Long-term debt + equity
2
Q
Debt equity ratio
A
Long-term debt
_______________________
Shareholders equity
3
Q
Full gearing ratio
A
Total debt
__________________
Total debt + equity
4
Q
Interest cover
A
Profit before interest and tax
_______________________________
Interest paid
5
Q
Total asset turnover
A
Sales
_____________________
Average total assets
6
Q
Equity multiplier
A
Average total assets
________________________
Average shareholders equity
