Working capital cycle (in days) is: Inventory (in days) + Receivables (in days) Payables (in days) – Debt Ratio = Total debts Total assets 16. Gearing = Debt11 Debt + Equity12 OR Debt Equity (equity to ratio) = . Shareholder’s equity x 100 Shareholders’ equity + total long term debt OR Shareholder’s equity x 100 assets less current liabilities Cover = Profit before Interest and Tax (PBIT) Interest payable Debt = Loans + Preference Shares 11 Equity = Ordinary share capital + Reserves + Non-controlling interest 12
Working capital cycle (in days) is: Inventory (in days) + Receivables (in days) – Payables (in days) Debt Ratio = Total debts Total assets 16. Gearing = Debt11 Debt + Equity12 OR Debt Equity (equity to ratio) = . Shareholder’s equity x 100 Shareholders’ equity + total long term debt OR Shareholder’s equity x 100 assets less current liabilities Cover = Profit before Interest and Tax (PBIT) Interest payable 11 Debt = Loans + Preference Shares 12 Equity = Ordinary share capital + Reserves + Non-controlling interest
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