《gearing_ratio 资产与负债比率》由会员分享，可在线阅读，更多相关《gearing_ratio 资产与负债比率（21页珍藏版）》请在金锄头文库上搜索。
1、Gearing ratio,23rd February 2015 Fateha Shaheen,Importance of gearing,Profits, reduced by interest payments Balance Sheet, weakened if loans are greater than shareholder funds Risk, borrowing increase the risk of a business Note, we have not defined risk yet, see later Borrowings have grown rapidly
2、in the last 15 years, linked with financial crisis, but may be falling now.,How to calculate GR,There are three different ways it can be calculated. In addition there are three different ways of presenting a balance sheet. The data you need can be found in three different places. The different metho
3、ds of calc reflect a deep disagreement in finance on the distinction between equity & debt. There be dragons here,Importance in summary,Impacts profits Impacts risk Impacts strength of balance sheet,Gearing ratio 1,Borrowings Long term Divided by Shareholders capital (B / C)*100 = gearing percentage
4、 A low figure is good. Low borrowing = low financial risk Plenty of scope for more loans if needed,Gearing ratio 2,Long term borrowings Add Short term borrowings Divided by Shareholders capital or shareholders funds ( (B1 + B2) / C ) *100,Gearing ratio 3,Borrowings Divided by Shareholders funds Add
5、Borrowings (B / (B+C) ) * 100,Identifying the figures,Shareholders funds includes Share capital Share premium Retained reserves or cumulative profits and loss account reserves Other reserves such as merger reserve. If losses are made SHF can be negative or zero,Tesco plc Equity millions,Share capita
6、l 402 Share premium account 4,896 Other reserves 40 Retained earnings 11,197 Equity attributable to owners of the parent 16,535 Non-controlling interests 88 Total equity 16,623,TESCO PLC BORROWINGS,Non-current liabilities Financial liabilities: Borrowings 9,689 Derivative financial instruments & oth
7、ers 600 Post-employment benefit obligations (1,356) Deferred tax liabilities (1,094) Provisions (113),TESCO PLC GEARING RATIO,(9, 689 / 16, 263 ) * 100 = 60%,Tesco plc long term & short term,Current liab Millions 1,386 9,689 + 1,386 = 11,075 (11, 075 / 16, 263) = 68%,THE PROBLEM OF BALANCE SHEET PRE
8、SENTATION,Theres more than one way of presenting a bal sheet Could be Assets = Liabilities (all liabilities inc. capital) Could be Assets-ST liabilities = LT Liabilities + Capital Note capital = shareholders funds Assets-ST Liability-LT Liability = Capital The final one is the easiest one to get gea
9、ring ratio When collecting data you need a consistent balance sheet presentation,Three types of gearing ratio,If there are three versions, which is correct? That depends Some people look at borrowing in the same way they look at capital. Others view borrowings as distinct from capital. In my view bo
10、rrowings are distinct from equity Version 3 fits in with the first view Version 1 & 2 fit in with my view,Economists and accountants,Economists view is that borrowings are similar to capital (equity, shareholders funds) Accountants view, the traditional view if you like, borrowings are distinct from
11、 capital & should never be confused. See later economists theories of finance, the revolution in corporate finance,Economists and accountants,Also have different theories of risk. Different theories of profits. Different ideas on valuing assets. More on this later. I take the accountants view, but y
12、ou may not agree with this. You must why you dont agree with me.,Negative gearing ratio,Borrowings cannot be a negative figure. Borrowings are a liability. When they are paid off they fall to zero. SHF can be a negative figure, if losses have wiped out the original capital. Indicates a company in gr
13、eat difficulty,High gearing ratios,Some companies take on high levels of borrowing, leads to a high GR But, there is another way to get a high GR If a company makes losses, SHF fall. As SHF become smaller the GR becomes bigger. High GR can be caused by losses rather than borrowings.,The normal range
14、 of GR,GR can take a wide range of values 0% means no borrowings 100% means borrowings equal to SHF (in version 1 and 2) 200% means borrowings twice as big as SHF (in versions 1 and 2) -20% means the company has made losses greater than SHF.,Results from green business research,A sample of green bus
15、iness companies showed a max GR= 190% Min GR = 0% Average GR = 37% Standard deviation of GR = 46 These results were generated in 2012 Note the high standard deviation.,Some research questions,Are green business firms deleveraging as a result of financial crisis? Are large companies deleveraging? Is the share of profits taken up by interest pays falling. Does a high GR lead to a high probability of bankruptcy?,
