Can anyone please help with the Gearing ratio formula?
As I understand the gearing ratio is long term borrowing / capital employed + long term borrowing × 100 . In an AAT mock it used both short term borrowing and long term / capital employed × 100 . It didnt add the long term borrowing to the capital employed and im wondering why? If there are 2 ways of doing the formula how will I know which is the correct one to use. Any help on this would be appreciated. Tia