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What is a gearing ratio?
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24 votes
What is a gearing ratio?

User Rich Oliver
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16 votes

Answer:

Gearing ratios are financial ratios that compare some form of owner's equity (or capital) to debt, or funds borrowed by the company. Gearing is a measurement of the entity's financial leverage, which demonstrates the degree to which a firm's activities are funded by shareholders' funds versus creditors' funds.

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User KevinOelen
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