Gearing Ratios Flashcards by Muhammad Durrani | Brainscape

Q

Capital Gearing

A

Long term debt/Long term debt + Equity * 100%

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Q

Interest Covers

A

PBIT/Interest paid = (times)

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Q

Interest Covers (alternative formula)

A

PBIT/Financial charge

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Q

Equity is

A

combined: reserves, shareholder’s funds etc.

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