gearing


Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia.

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.
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.