martes, 1 de abril de 2008

Long Term Debt to Shareholders Equity

g MAIN FOCUS : EQUITY

g OTHER NAME : GEARING RATIO


g DEFINITION :

A high gearing ratio is unfavourable because it indicates possible difficulty in meeting long term debt obligations.


g FORMULA : Long Term Debt to Shareholders Equity =
long term debt
−−−−−−−−−−−−−−−−−−−−−−−−−
shareholders equity

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