Hi, I'm wondering if anyone can give me a pointer in a couple of ratios please? I have an assessment in a few days, and am struggling with some of the notes I've been given, well it's more how to interpret the results as the notes are not that great for some. For each ratio, I have to interpret the results of a company from one year to the next.
Gearing - If the percentage increases, I'm not sure what the reason could be for it to be higher and the significance of it.
Return on Capital Employed - I think I've got this right in that the higher the percentage, the better return for shareholders money, but I need to elaborate and give an example of why.