What Is a Gearing Ratio and How Does It Work?

Опубликовано: 29 Октябрь 2024
на канале: Simple Explain
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Gearing ratios assess a company's financial leverage by comparing owner's equity to debt. A high gearing ratio indicates a riskier financing structure, making the company more susceptible to economic downturns. These ratios are useful for internal management and external parties, and are most meaningful when compared to other companies within the same industry.
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