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Gearing
under 5 Years
This shows
the proportion of total medium and short-term borrowings to
shareholders’ funds. Medium-term borrowings are defined as loans
and other debt due for repayment between one and five years’
hence. Short-term borrowings refer to debt repayable on demand
or within one year. Cash and other liquid assets are not deducted.
Calculation:
DEBT DUE
WITHIN 5YRS
--------------------------
X 100 = GEARING UNDER 5 YRS (%)
SHAREHOLDERS’
FUNDS
Separate
figures are calculated to show gearing under 5 years both before
and after deducting intangibles from shareholders’ funds.
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