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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?Hi,
I wouldn’t worry about ratios too much at P2 level but to answer your question the gearing ratio is to do with debt and so will include any interest bearing debt. Therefore preference shares are finance leases would be included with both current and non-current amounts included too.
The current ratio includes all current liabilities, so both the finance lease and current tax are included.
Thanks
i was asking about whether deffered tax, finance lease will be taken in long term liablities in gearing ratio in the numerator along with bank loans,preference shares etc
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