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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.
@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!
@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 followsFY2011: 10%
FY2012: 15%
FY2013: 20%
FY2014: 25%when discussing overall trend do we state that Gearing ratio deteriorated from 10% to 25% over three years or 15% to 25%?
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