1. TASK: Insert the appropriate word in the text below:
acceptable - adverse - collapse - doubled
figure - financed - intimidating - raising - equity
reliant - revise - stability - use - would
First, debt/equity ratio. Basically, it tells us whether the company is _________ through the use of debt or by its own _________. The _________ rate for this ratio is 0.5 or lower than 1. In this case, the ratio is nearly 5 times higher than the acceptable _________. Actually, this is an _________ sign as it means that the company is mainly financed by the _________ of debt. In case of an _________ movement on the market, the company may _________ very quickly.
What is more it has more than _________ this year in comparison with the previous year. That means the company’s _________ has deteriorated and now it is more _________ on the external debt.
I _________ recommend the company’s management to _________ the borrowing policy otherwise they could experience difficulty in _________ funds either from the financial institutions or from the shareholders.
2. CHECK YOUR SPEAKING
|
acceptable |
əkˈseptəbl |
прийнятний |
|
adverse |
ˈæd.vɜːs |
несприятливий |
|
to collapse |
kəˈlæps |
обрушитися |
|
to double |
ˈdʌb.l̩ |
подвоється |
|
equity |
ˈek.wɪ.ti |
власний капітал |
|
figure |
ˈfɪɡə(r) |
цифра, показник |
|
to finance |
ˈfaɪ.næns |
фінансувати |
|
intimidate |
ɪnˈtɪm.ɪ.deɪ.tɪŋ |
лякаючий |
|
to raise |
reɪzɪŋ |
залучати (кошти) |
|
reliant |
rɪˈlaɪ.ənt |
залежний |
|
to revise |
rɪˈvaɪz |
переглядати |
|
stability |
stəˈbɪl.ɪ.ti |
стабільність |
|
use |
juːz |
використання |
3. SEE CORRECT ANSWER
First, debt/equity ratio. Basically, it tells us whether the company is financed through the use of debt or by its own equity. The acceptable rate for this ratio is 0.5 or lower than 1. In this case, the ratio is nearly 5 times higher than the acceptable figure. Actually, this is an intimidating sign as it means that the company is mainly financed by the use of debt. In case of an adverse movement on the market, the company may collapse very quickly.
What is more it has more than doubled this year in comparison with the previous year. That means the company’s stability has deteriorated and now it is more reliant on the external debt.
I would recommend the company’s management to revise the borrowing policy otherwise they could experience difficulty in raising funds either from the financial institutions or from the shareholders.
Цей та багато інших цікавих матеріалів Ви знайдете в підручнику “Practical Financial English”
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