Solvency Ratios

Question 1

Debt to assets ratio

Answer 1

Debt
/ total assets

X100

Question 2

Debt to equity ratio

Answer 2

Debt capital
/ equity capital

X 100

Question 3

Finance cost coverage

Answer 3

Profit after finance cost and tax
/ finance cost

Question 4

Fixed obligation coverage

Answer 4

PBT + finance cost * rent paid
/ finance cost + rent paid + ( (capital redemption / (1-t))

Question 5

Preference div coverage

Answer 5

Profit tax - non controlling int
/ pref div

Question 6

Ord div coverage

Answer 6

PAT - noncontrolling int - ps div
/ ord div