Gearing
A fundamental analysis ratio of a company's level of long-term debt compared to its equity capital. Gearing is expressed in percentage form.
Companies with high gearing - more long-term liabilities than shareholder equity - are considered speculative.
Also known as "financial leverage". Investopedia Says:
In simpler terms, gearing explains how a company finances its operations - either through outside lenders or through shareholders. Related Terms:
Capital
Fixed Interest Rate
Leverage
Negative Gearing
Speculation
Stockholder's Equity |