gearing


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Gearing

Leverage Ratio

In risk analysis, any ratio that measures a company's leverage. One example of a gearing ratio is the long-term debt/capitalization ratio, which is calculated by taking the company's long-term debt and dividing it by its long-term debt added to its preferred and common stock. Another example is a simple debt-to-equity ratio, which is calculated by dividing total debt by total equity. Generally, companies with higher leverage as determined by a leverage ratio are thought to be more risky because they have more liabilities and less equity. A leverage ratio is also called a gearing ratio or an equity multiplier.

gearing

see CAPITAL GEARING.

gearing

see CAPITAL GEARING.
References in periodicals archive ?
For the purpose of more clearly outlining this method, reference is made to a typical planetary gearing mechanism having gears of the same circular pitch.
Each of these techniques has advantages, and each has been used to produce double-enveloping worm gearing.
Smart growth in our target markets will reinforce our technical leadership position among the world's users of gearing products and services.
The core of the Berstorff gear pump is a pair of gear shafts with double helical gearing (figure 1), to prevent axial forces from acting on the bearings of both shafts.
Philadelphia Gear Corporation, a full-service provider of gearing and power transmission solutions, announces the appointment of Gaetan Perron to the position of Sales Representative, servicing existing Philadelphia Gear customers in Canada and expanding PGC's customer base in Eastern Ontario, Quebec and the Maritimes.