capital structure

(redirected from Gearing ratio)

Capital structure

The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the ratio of debt to equity and the mixture of short and long maturities.

Capital Structure

How a company finances its operations. The three most basic ways to finance are through debt, equity (or the issue of stock), and, for a small business, personal savings. Capital structure usually refers to how much of each type of financing a company holds as a percentage of all its financing. Generally speaking, a company with a high level of debt compared to equity is thought to carry higher risk, though some analysts do not believe that capital structure matters to risk or profitability.

capital structure

capital structure

the composition of a JOINT-STOCK COMPANY'S long-term capital which reflects the source of that capital, for example SHARE CAPITAL and long-term LOAN CAPITAL. See CAPITAL GEARING.

capital structure

See capital stack.
References in periodicals archive ?
Despite the loan, PSPC's gearing ratio will remain the same.
The overly cautious policies, he said, stem from the predominant role of the World Bank, whose statutory gearing ratio until recent years was 1:1.
All three combined denote the complete motorcycle gearing, and are referred to as the total gearing ratio.
NSX-listed real estate company, Oryx properties has set a target of a 40% gearing ratio by mid next year, the Economist has established.
Now into its 4th year of net losses, Texchem's eroded shareholders' funds and heftier debt load are undermining the strength of its balance sheet; the Group is highly leveraged, with an adjusted gearing ratio of 1.
Gearing ratio indicates the extent to which debt financing is used relative to the total capital employed.
Only 27% of investors (at the corporate borrowing level) have a gearing ratio of more than 50%, with the majority in the range of 41%-50% gearing.
As a result of the lower debt level, SEB's adjusted gearing ratio improved slightly to 3.
After the mining company took on its second debt package in a period of just four months, the gearing ratio of gold miner Newcrest Mining shows little sign of falling.
The Group's gearing ratio (the ratio of consolidated net bank borrowings to shareholders' fund and minority interests) was 1, as compared with 1.
40 billion as at end-June 2013, translating into a gearing ratio of 0.
As at March 31, 2004, the aggregate of the Group's shareholders' funds and minority interests was HK$1,551 million and the Group's gearing ratio (the ratio of consolidated net bank borrowings to shareholders' fund and minority interests) was 1.