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

See capitalization.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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 ?

Aspo Oyj (HEL:ASPO) announced on Monday that following the adoption of the new IFRS 16 standard, Aspo will change its financial target for gearing ratio to up to 130%, as compared with its prior financial target for gearing of up to 100%.

Aspo announces change in gearing target with adoption of IFRS 16 standard

Despite the loan, PSPC's gearing ratio will remain the same.

Shell taps BPI for P9-billion loan

All three combined denote the complete motorcycle gearing, and are referred to as the total gearing ratio. Each gear ratio determines the level of twisting force (torque) that makes it through to the rear wheel.

Motorbiking: How gears work

Bank's size, gearing ratio, non-performing loans (NPL) ratio, operational efficiency, asset composition, asset management, capital adequacy ratio, deposit ratio, gross domestic product (GDP), and consumer price index (CPI) are used as independent variables.

Determinants of profitability of Islamic banking industry: An evidence from Pakistan

NSX-listed real estate company, Oryx properties has set a target of a 40% gearing ratio by mid next year, the Economist has established.

Oryx targets 40% gearing ratio

"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 1.97 times as at end-September 2011.

-RAM Ratings trims Texchem's long-term rating to BBB1

The proportion of total fixed liabilities to the total capital employed is called gearing ratio. Gearing ratio indicates the extent to which debt financing is used relative to the total capital employed.

Impact of earnings management on capital structure of non-financial companies listed on (KSE) Pakistan

But the debt gearing ratio was virtually unchanged at 21.2% and the liquidity of companies in the sector remained healthy continuing the upward trend over the past three years.

IT Profitability Slips in UK as Y2K Approaches

As a result of the lower debt level, SEB's adjusted gearing ratio improved slightly to 3.44 times (FY Dec 2012: 3.71 times) while its adjusted funds from operations debt coverage (FFODC) remained relatively unchanged at 0.07 times (FY Dec 2012: 0.06 times).

RAM Ratings reaffirms AA1/Stable rating of Sarawak Energy's Sukuk

As at end-December 2010, the Group's capital structure remained constrained by its hefty debt burden of MYR21.18bn, with a corresponding gearing ratio of 2.94 times.