Hi all
As part of one of my assignments I am analysing the accounts of Paddy Power (Bookmaker)
One of the financial ratios that I am looking at is the Gearing Ratio. This figure is currently Zero, and I was wondering why they should have zero gearing ? (0.9 in 2001 & 2.51 in 2000) William Hill on the other hand have figures of 53.37, 65.35, and 95.44 for the periods 2003 -2001 respectively
Any suggestions which ratios would be most appropriate when performing financial ratio analysis on such a business ? I know that I cannot look at ratios regarding stock, as they don't hold any stock
Any suggestions most welcome
TIA