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- Dictionarygearing/ˈɡɪərɪŋ/
noun
- 1. the set or arrangement of gears in a machine: "the mill's internal waterwheel and gearing survive"
- 2. the ratio of a company's loan capital (debt) to the value of its ordinary shares (equity). British "the firm expects its gearing to rise to 20 per cent"
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Sep 5, 2020 · What Is Gearing? Gearing refers to the relationship, or ratio, of a company’s debt-to-equity (D/E) . Gearing shows the extent to which a firm’s operations are funded by...
Gearing is the amount of debt – in proportion to equity capital – that a company uses to fund its operations. A company that possesses a high gearing ratio shows a high debt to equity ratio, which potentially increases the risk of financial failure of the business.
Jul 12, 2024 · Gearing ratios are a group of financial metrics that compare shareholders' equity to company debt in various ways. The goal of gearing ratios is to assess the...
May 30, 2024 · A gearing ratio measures a company's financial leverage. Although gearing ratios vary by industry, there are some guidelines for what's a good, bad, or normal gearing ratio.
Jan 3, 2024 · Gearing ratio is an important financial metric that measures the level of debt used to finance a company’s assets and operations relative to equity. The gearing ratio gives insight into a company’s financial leverage and helps evaluate its financial risk.
A gearing ratio is a measure used by investors to establish a company’s financial leverage. In this context, leverage is the amount of funds acquired through creditor loans – or debt – compared to the funds acquired through equity capital. Gearing ratio formula.
Dec 19, 2023 · Gearing and current ratios are financial indicators that assess different elements of a company's fiscal stability. While the gearing ratio assesses a company's financial leverage, the current ratio is a tool that determines if a company can cover its short-term debts using its immediate assets.
Nov 4, 2020 · Gearing ratio measures a company’s financial leverage, the level of interest-bearing liabilities in its capital structure. It is most commonly calculated by dividing total debt by shareholders equity.
Apr 17, 2024 · The gearing ratio is a measure of a company’s capital structure, which describes how a company’s operations are financed with regard to the proportion of debt (i.e. the capital provided from creditors) vs. equity (i.e. the funding from shareholders).
the amount of money a company has borrowed compared to its share capital: You must look at the company's gearing level and its ability to service its debt. (Definition of gearing from the Cambridge Business English Dictionary © Cambridge University Press) What is the pronunciation of gearing?
