Accountancy, asked by paramanandadalli4233, 4 months ago

gearing ratio formula

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Answered by jaatsahab67

0

Gearing ratio measures a company's financial leverage, the level of interest-bearing liabilities in its capital structure. It is most commonly calculated by dividing total debt by shareholders equity. Alternatively, it is also calculated by dividing total debt by total capital (i.e. the sum of equity and debt capital).

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