Gearing ratio can be defined as the ratio a company’s debt to that of its equity. This is also called as debt to equity ratio. High gearing ratio means that ratio of debt to equity is high and vice versa. Sometimes this ratio is
A general term telling financial ratios that compare some form of owner’s equity to borrowed funds. Gearing is a measure of financial influence, indicating the degree to which a firm’s activities are funded by owner’s funds versus creditor’s funds.
Capital Gearing Ratio: Definition and Explanation: Closely related to solvency ratio is the capital gearing ratio. Capital gearing ratio is mainly used to analyze the capital structure of a company. The term capital structure refers to the relationship between the various long-term form of