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Change in Loans - Ratio Analysis [Virtual Learning Arcade]

A brief interactive worksheet looking at the effect of a increase in loans on the firm''s ratios.

Performance Ratio Analysis

The aim of these questions is to assess how an increase in external loans will impact on the Performance Ratios.

What should happen to the gearing ratio if the company borrowed £50,000 from the bank?(select one answer)

(a) * increase
(b) * decrease
(c) * remain the same

What are the likely consequences of the company increasing its loan capital up to £3,000 on the performance ratios? What does this imply for the company? Try This

(Type your answer to the previous question in the box below, then click on explain)


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Submitted by bized on Wed, 14/03/2001 - 13:00