In stable industries, however, a high gearing ratio may not present a concern. Utility companies, for example, require large capital investments, but they are monopolies and their rates are highly ...

The gearing ratio formula is as follows: This ratio is expressed as a percentage, which reflects how much of a company’s existing equity would be required to pay off its debt. Let’s say a company is ...

Working capital turnover, also known as net sales to working capital, is a ratio that measures how efficiently a company is using its working capital to support sales and growth. Working capital ...

They include the equity ratio, debt-to-capital ratio, debt service ratio, and net gearing ratio. Each is calculated using a different formula ... fixed assets. For example, utility companies ...

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 ...