|
Income Gearing
|
Interest Paid (Total Paid Less
Capitalised) X 100 |
|
Net Profit
B.T. + Interest Paid (Total Paid Less Capitalised |
Benchmark:
10-15%
Interest paid on borrowings as a percentage of pre-interest profit.
Shows
how much of the company’s profit goes towards serving its debt (see gearing),
giving an indication of how well the company is meeting its debt
requirements/how credit worthy it is (the lower the better).
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Calculations Index
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