Gearing_ratio 资产与负债比率.ppt

Gearing ratio 23rd February 2015 Fateha Shaheen Importance of gearing Profits, reduced by interest payments Balance Sheet, weakened if loans are greater than shareholder funds Risk, borrowing increase the risk of a business Note, we have not defined risk yet, see later Borrowings have grown rapidly in the last 15 years, linked with financial crisis, but may be falling now. How to calculate GR There are three different ways it can be calculated. In addition there are three different ways of presenting a balance sheet. The data you need can be found in three different places. The different methods of calc reflect a deep disagreement in finance on the distinction between equity debt. ‘There be dragons here’ Importance in summary Impacts profits Impacts risk Impacts strength of balance sheet Gearing ratio 1 Borrowings Long term Divided by Shareholders capital (B / C)*100 = gearing percentage A low figure is good. Low borrowing = low ‘financial risk’ Plenty of scope for more loans if needed Gearing ratio 2 Long term borrowings Add Short term borrowings Divided by Shareholders capital or shareholders funds ( (B1 + B2) / C ) *100 Gearing ratio 3 Borrowings Divided by Shareholders funds Add Borrowings (B / (B+C) ) * 100 Identifying the figures Shareholders’ funds includes Share capital Share premium ‘Retained’ reserves or cumulative profits and loss account reserves Other reserves such as merger reserve. If losses are made SHF can be negative or zero Tesco plc ‘Equity’ ￡ millions ? ?Share capital 402 Share premium account ? 4,896 Other reserves ? 40 Retained earnings ? 11,197 Equity attributable to owners of the parent ? 16,535 Non-controlling interests ? 88 Total equity ? 16,623 TESCO PLC BORROWING