Income Gearing

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
My Boss has forewarned me that he wants me to start on a project next week on Income Gearing?? Any tips or information that might help me please? I have never actually heard of this.

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Income Gearing

    Hi Jane.

    Income gearing = Interest / Profit

    Scott.



  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Income Gearing

    Jane

    Just to expand a bit on Scotty's reply, income (or interest) gearing is:

    Debt interest / Operating profits before debt interest and tax

    Remember that preference share dividends are treated as debt interest.

    Okay, so I have just copied that out of a textbook. Let's hope I remember it in my next exam!

    Regards

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