Business Studies, asked by roshninisha020, 2 months ago

when can a company face a high gearing SITUATIO.

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Answered by shekharh6

5

Good and Bad Gearing Ratios

A gearing ratio higher than 50% is typically considered highly levered or geared. As a result, the company would be at greater financial risk, because during times of lower profits and higher interest rates, the company would be more susceptible to loan default and bankruptcy.

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