Evaluate the company’s solvency and capital structure using leverage ratios and interpret your findings using the following ratios marks):a. Debt Ratiob. Equity Ratioc. Debt to Equity Ratiod. Long term debt to total capitalizatione. Times Interest Earned Ratio Notes2020$'0002019000,2$CURRENT ASSETSCash and cash equivalentsShort term investments415,6201,084,1431,087,05646,5256.67988,571213,189152,53710,50710.4503(d),5Securities purchased under resale agreementsAccounts receivable3(e)6Taxation recoverableTotal current assets2.240,023475,254CURRENT LIABILITIESAccounts payableLoans and borrowingsLease liabilities7682,999130,000550,364150,0005,7951411(b)5.795Total current liabilities818.794706.159WORKING CAPITAL SURPLUS /(DEFICIT)1.421,229230,905)NON-CURRENT ASSETSInterest in subsidiary and associate companies8.3,624,71118,92987,57968.4455,055,41926,91794,74472.471InvestmentsProperty, plant and equipmentRight-of-use assets1011(a)Total non-current assets3.799.6645,249,551Total assets less current liabilities5.220.8935.018.646EQUITYShare capitalReserves12112,214112,214133,950.0893.703,709Total equity attributable to stockholders4.062,3033.815,923NON-CURRENT LIABILITIESLoans and borrowingsLease liabilities141,100,29058.3001,138,22264,50111 (b)Total equity and non-current liabilities5,220,8935.018,646

Evaluate the company’s solvency and capital structure using leverage ratios and interpret your findings using the following ratios marks): a. Debt Ratio b. Equity Ratio c. Debt to Equity Ratio d. Long term debt to total capitalization

Evaluate the company’s solvency and capital structure using leverage ratios and interpret your findings using the following ratios marks): a. Debt Ratio b. Equity Ratio c. Debt to Equity Ratio d. Long term debt to total capitalization

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Evaluate the company’s solvency and capital structure using leverage ratios and interpret your findings using the following ratios
marks):
a. Debt Ratio
b. Equity Ratio
c. Debt to Equity Ratio
d. Long term debt to total capitalization
e. Times Interest Earned Ratio

Notes
2020
$'000
2019
000,2$
CURRENT ASSETS
Cash and cash equivalents
Short term investments
4
15,620
1,084,143
1,087,056
46,525
6.679
88,571
213,189
152,537
10,507
10.450
3(d),5
Securities purchased under resale agreements
Accounts receivable
3(e)
6
Taxation recoverable
Total current assets
2.240,023
475,254
CURRENT LIABILITIES
Accounts payable
Loans and borrowings
Lease liabilities
7
682,999
130,000
550,364
150,000
5,795
14
11(b)
5.795
Total current liabilities
818.794
706.159
WORKING CAPITAL SURPLUS /(DEFICIT)
1.421,229
230,905)
NON-CURRENT ASSETS
Interest in subsidiary and associate companies
8.
3,624,711
18,929
87,579
68.445
5,055,419
26,917
94,744
72.471
Investments
Property, plant and equipment
Right-of-use assets
10
11(a)
Total non-current assets
3.799.664
5,249,551
Total assets less current liabilities
5.220.893
5.018.646
EQUITY
Share capital
Reserves
12
112,214
112,214
13
3,950.089
3.703,709
Total equity attributable to stockholders
4.062,303
3.815,923
NON-CURRENT LIABILITIES
Loans and borrowings
Lease liabilities
14
1,100,290
58.300
1,138,222
64,501
11 (b)
Total equity and non-current liabilities
5,220,893
5.018,646

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