วันอังคารที่ 22 ธันวาคม พ.ศ. 2552

What gearing is suitable for a corporate credit card?

Gearing is the ratio of own shares of a company of capital and reserves and loans. In assessing the value of a company, it is important to compare the gearing ratio to other similar companies.

E 'regular use of the premises of the Central Bank to examine the links between banks and to advise them if they were to issue new capital. Central Bank would carry out periodic exercises to test gear in which the different structures of their Banks would have been considered. This exercise is also one of the most important measures that the central bank will be used to assess the stability of individual banks.

Financial companies are working on the basis of historical gearing ratio of 10:1, which means that the debtor is ten times their capital and reserves. While industrial companies might be unwise to work with a debt ratio of 1:1.

The right level of debt depends greatly on the circumstances of the case > Company. Commercial banks tend to have higher levels than firms in other financial sectors. This is because of their special nature of their work for the collection of deposits, with current / savings account facilities and a secured / unsecured loans and other financial assets. The credit card company, which operates on its own account would agree to serve where between 5:1 and 15:1, to be prudent.

The higher the debt ratio, the greater the> Companies vulnerability to fluctuations in the cost of money.

Last survey to a small group of companies of consumer credit have been conducted have shown that its financing as follows:

Shareholders funds of 14%

Bonds 56%

Liabilities to the public 10%

Other sources 20%

Total 100%

These percentages give some indication of the relative importance of loans to other forms of financing for consumer credit as a whole. In the case of a loanBusiness Card, its financing by commercial banks almost certainly see a higher percentage of up to 90% or more in one case.

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