Gearing (A level BS)

From WikiTextbook

Jump to: navigation, search


<math>Gearing=\frac{Long\ term\ Liabilities}{Capital\ Employed}</math>

Gearing measures the extent to which a company is funded by debt. This debt includes only borrowing and not other debt such as trade creditors. Companies with more stable operating profits can safely take on higher levels of debt so what is acceptable depends on the business.



Links

Personal tools