Extract A Extract from easyJet plc’s annual report 2020 2020 £m Non-current liabilities 2,748 Total equity 1,899 EasyJet plc’s gearing for 2019 was 45.67% (Source: adapted from https://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/agm/agm-dec-2020/annual-report-2020.pdf) (a) Using the data from Extract A, calculate the difference in the gearing ratio for easyJet plc between 2019 and 2020 - Edexcel - A-Level Business - Question 1 - 2022 - Paper 2

The gearing ratio is calculated using the formula:

$\text{Gearing Ratio} = \frac{\text{Non-current liabilities}}{\text{Capital employed}} \times 100$

Applying the values from 2020:

$\text{Gearing Ratio for 2020} = \frac{2,748}{4,647} \times 100 = 59.13\%$

To find the difference in gearing ratios between 2020 and 2019:

$\text{Difference} = 59.13\% - 45.67\% = 13.46\%$

Therefore, the difference in the gearing ratio for easyJet plc between 2019 and 2020 is 13.46%.