Capital Gearing ratio

Final 5686 views 2 replies
User Avatar

Asst Manager Accounts
175 Points Joined May 2010

Dear Friends,

                             Please write the formula and interpretation of Capital Gearing ratio.Normally it is Eqcap+ Resv/ Deb+ Loans, but in Ca Suggested for Final in valuation & Goodwill Formula is the reverse i,e Deb+ Loans/ Eq cap+ Resv

Explain it

Thanking you,

Swarup Datta

Reply Share Follow
On 24 September 2010 at 16:15 Report
Replies (2)
User Avatar

CA Student
6149 Points Joined March 2009

Capital Gearing Ratio =

Equity Share Capital + Reserves and Surplus / Fixed Interest Bearing Funds like Long term loans, Debentures
 

Reply
On 24 September 2010 at 16:32
User Avatar

Student
34 Points Joined December 2011

I have seen both the formulas on different websites. A better explanation can be found here:

https://www.accountingformanagement.org/capital-gearing-ratio/

Reply
On 05 December 2013 at 10:04


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading