a bit of advice - gearing ratio
fez
Registered Posts: 1 New contributor 🐸
I have been asked a question regarding the gearing ratio, and am slightly unsure of the answer.
Within the capital employed part of the equation, does one include the value for a 'merger reserve' that is shown within the Capital and Reserves figures reported on the balance sheet?
Apologies if this question has been answered before.
(It's quite urgent!)
Within the capital employed part of the equation, does one include the value for a 'merger reserve' that is shown within the Capital and Reserves figures reported on the balance sheet?
Apologies if this question has been answered before.
(It's quite urgent!)
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I have been asked a question regarding the gearing ratio, and am slightly unsure of the answer.
Within the capital employed part of the equation, does one include the value for a 'merger reserve' that is shown within the Capital and Reserves figures reported on the balance sheet?
Apologies if this question has been answered before.
(It's quite urgent!)
I don't see why'd you'd exclude it, it's in equity on the balance sheet! Presumably you want the figure to look as healthy as you can, so unless the form you're completing / person you're responding to specifically said 'only include retained earnings and share capital' (or words to that effect) I'd include it.0