An optimal gearing ratio is primarily determined by the individual company relative to other companies within the same industry. There are, however, a few basic rules for good and bad gearing ...

Having very little borrowing might sound intuitively like a good thing, but in some cases ... to borrow to drive future ...

What Is a Good Debt-to-Equity Ratio ... The D/E ratio can be classified as a leverage ratio (or gearing ratio) that shows the relative amount of debt a company has. As such, it is also a type ...

This means that for every $1 in shareholder equity, the company has $2 in debt. This would be considered an extremely high gearing ratio. What is a good or bad gearing ratio? A good or bad gearing ...

What Is a Good Debt-to-Equity Ratio ... The D/E ratio can be classified as a leverage ratio (or gearing ratio) that shows the relative amount of debt a company has. As such, it is also a type ...