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 ?
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%.
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. Each gear ratio determines the level of twisting force (torque) that makes it through to the rear wheel.
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.
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 1.97 times as at end-September 2011.
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.
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.
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).
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.
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.