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 ...

Gearing ratio is used to evaluate and measure how efficiently the capital mix of a company is structured. Quite often investors confuse between the Debt/Equity Ratio and the Gearing Ratio. In a sense ...

One of the key decisions that every company takes is how much debt to have. Debt is a double-edged sword. On one hand, it reduces your cost of capital because the cost of debt is lower than the cost ...