What is Gearing and what is Oricas Gearing policy?
A. Gearing is the ratio of net debt to net debt plus equity. The calculation is: Long + short-term loans – cash & equivalents Long + short-term loans – cash & equivalents + Shareholders’ equity + minority interests Orica has a preferred Gearing range of between 30 – 40% with an Interest Cover (EBIT/Net Interest) of above 5 times. Orica may exceed the preferred range from time to time to take advantage of opportunities that present themselves.
