Gearing Ratio

Gearing ratio is defined as comparison of owner’s capital to the borrowed funds. Higher gearing ratio shows higher debt to equity ratio & vice versa. Gearing ratio is also the measure of company’s financial leverage or risk and indirect precaution of company’s business risk.

Capital Gearing Ratio

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