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Ratio example – Gearing (kaplan Q 416)

This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.

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March 8, 2022 at 6:42 pm #650290
uzzy0121
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In the Kaplan exam kit for Q416 the Gearing ratio is calculated with a bottom figure of 9500. Im not sure how they get this figure
Total equity is 2800 and even if you include loans it doesn’t come to 9500
Could someone please help me here thanks
March 12, 2022 at 8:35 am #651126
P2-D2
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Hi,
I’ve not got the kit to hand so can’t fully answer the question, but gearing is usually debt divided by debt plus equity. What other debt (interest bearing) is there in the SFP? Could they have included some current liability debt?
Thanks
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