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if non current liabilities include deffered tax, pension liabilities,finance leases and preference shares , will we include them in calculation of Gearing ? and will they be part of total capital employed?
and what about finance lease current portion and tax liability in current liability , will we take that in current ratio calculation?This is a difficult one to answer and I’m not going to be definitive about it!
Basically, the answer is “If you want”
I believe that professional analysts omit items such as deferred tax when using the figure for long term liabilities although I could argue quite strongly that finance lease creditor should be included within financing
I can find no argument to contradict the inclusion of tax and finance lease creditor in current liabilities
OK?
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