Understanding Capital Structure Ratios and Their Analysis

The video tutorial covers capital structure ratios, focusing on capital gearing and proprietary ratios. It explains the formulas, provides examples, and discusses the implications of these ratios on a company's financial health. The tutorial emphasizes the importance of balancing equity and debt and concludes with a preview of the next session on coverage ratios.

What is the capital gearing ratio and how is it calculated?

Explain the difference between fixed interest or dividend bearing funds and common stockholders equity.

What does a low capital gearing ratio indicate about a company's financial structure?

What factors should be considered when determining the optimum capital structure ratio for a company?

How is the proprietary ratio calculated and what does it signify?

What are the implications of having a high proprietary ratio for a company?

Discuss the importance of analyzing multiple ratios when evaluating a company's capital structure.