logo

Analysis of Capital structure - Cash Converters Limited

Annual report for Cash Converters International Limited for the year ended 30 June 2018, including corporate directory, chairman's report, operating and financial review, directors' report, consolidated financial statements, and auditor's report. Also, an assignment for BUSN1001 course on analyzing the company's profitability, efficiency, liquidity, and capital structure based on calculated ratios.

6 Pages687 Words29 Views
   

Added on  2023-03-17

About This Document

This document provides an analysis of the capital structure of Cash Converters Limited, including the debt to equity ratio, debt cover ratio, and times interest earned ratio. It also discusses the overall analysis of the company's capital structure and suggests areas for improvement.

Analysis of Capital structure - Cash Converters Limited

Annual report for Cash Converters International Limited for the year ended 30 June 2018, including corporate directory, chairman's report, operating and financial review, directors' report, consolidated financial statements, and auditor's report. Also, an assignment for BUSN1001 course on analyzing the company's profitability, efficiency, liquidity, and capital structure based on calculated ratios.

   Added on 2023-03-17

ShareRelated Documents
Analysis of Capital structure
CASH CONVERTERS LIMITED
Analysis of Capital structure - Cash Converters Limited_1
Contents
Part 2 Capital structure................................................................................................................................3
Debt to Equity ratio.....................................................................................................................................3
Debt cover ratio...........................................................................................................................................4
Times interest earned ratio..........................................................................................................................4
Overall analysis............................................................................................................................................5
References...................................................................................................................................................6
Analysis of Capital structure - Cash Converters Limited_2
Part 2 Capital structure
The below table represents the information of the company namely, Cash Converters Limited for
the period of the 2017 as well as 2018 to determine the capital structure of the company. The
capital structure is the way how firm finances the overall operations of the business. the capital
structure is classified as the mixture of the debt and equity.
Cash Converters 2017 2018
Debt to equity
ratio
Debt 0.53 0.58
Equity
Debt cover ratio
Non-current
Liabilities 1.46 -0.96
Net cash flow
from operating
activities
Interest
coverage ratio
EBIT 3.00 2.89
Interest expense
Debt to Equity ratio
In simpler terms the debt to equity ratio determines the composition and the proportion of the
debt and equity the company has used to finance the business. The debt to equity ratio signifies
the value by separating the value of all the liabilities and dividing it by the value of the total
equity. These numbers are accessible on the monetary record of an organization's fiscal
summaries. The major reason why this ratio is calculated is because it helps in the assessment of
the monetary as well the financial position of the company. it is used as the measurement by
Analysis of Capital structure - Cash Converters Limited_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting and Finance for Executives– UUAC5300
|15
|3222
|20

Long Term Solvency Ratios and Financial Performance Analysis of Walt Disney
|4
|1133
|209

Financial Planning Assignment -
|16
|2454
|41

Financial Position and Profitability Analysis of Telstra Corporation Ltd. (2017-2018)
|7
|2067
|439

A Case Study on the Use of Capital Budgeting Techniques in Accounting and Finance
|9
|1198
|472

Analytical Discussion on ASX Registered Company with Financial Ratio Analysis
|8
|1398
|351