- November 8, 2014 at 8:09 pm
Ok, When making graphs and discussing variations. I am a little confused with 3 year period.
Is 3 year period FY2012 to 2014 or FY2011 to 2014.
I have made graphs from FY2011 to 2014 as basically end of FY2011 is start of FY2012 hence three year period is basically start of FY2012 to end of FY2014?
So i calculated ratios of 4 years but discussed variations of only three years.
To be clear i am trying to say that i calculated FY2011 so that when discussing FY2012 i can discuss about how much ratio changed from previous year and why and trend etc.
Is it fine this way? please clarify this is a bit confusing.November 8, 2014 at 11:23 pm
@captmario – I believe that the way you have approached this by calculating ratios for 4 years but discussing variations for three years is absolutely correct. In fact, that is exactly how I did it in my RAP. I prefer this way as for the “first” year in your analysis, you need a “base” year to compare it with. A stand alone ratio for the first year is useless if its not compared to previous year because as you have already indicated; thats how you can identify a trend.
Good luck!November 9, 2014 at 5:35 am
Good day, so what are others saying about the above discussion….November 9, 2014 at 8:49 am
@isookvi. Thank you, thats a little relief for me
However i will await a few more replies just to be sure.
Just to add something to this discussion.
Assuming gearing ratio for FY is as follows
when discussing overall trend do we state that Gearing ratio deteriorated from 10% to 25% over three years or 15% to 25%?
The topic ‘Three years’ is closed to new replies.