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Analysis of the funding structure > Lenders' perspective - Pg. 172

accounts demystified 60% 48.3% 40% 27.6% 20% 38.4% 59.3% 54.3% 0% Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Figure 10.1 Wingate's debt to total funding ratio Back in year one it was at a fairly conservative level; currently it is over the 50 per cent threshold at which people start to look at the company very carefully. Let's now see why people care about this ratio; we'll start by looking at it from the perspective of lenders (i.e. the banks).