The higher a company's degree of leverage, the more the company is considered risky. As for most ratios, an acceptable level is determined by its comparison to ratios of companies in the same industry. The best known examples of gearing ratios include the debt-to-equity ratio (total debt / total equity), times interest earned (EBIT / total interest), equity ratio (equity / assets), and debt ratio (total debt / total assets).
A company with high gearing (high leverage) is more vulnerable to downturns in the business cycle because the company must continue to service its debt regardless of how bad sales are. A greater proportion of equity provides a cushion and is seen as a measure of financial strength.
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gearing ratio: translation An accounting ratio which measures the level of debt finance a company has raised relative to its level of shareholders' fun... смотреть
фин., брит. = capitalization ratio * * *• соотношение собственных и заемных средств • соотношение собственных и заемных средств банка * * *леверажное ... смотреть
gearing ratioсм.leverage ratio
фр.coefficient d'utilisation des fonds propres; rapport encours des prêts/fonds propresисп.relación préstamos desembolsados y pendientes-capital y rese... смотреть