Gearing (company) – How much a company has borrowed compared to it's value
(Pronounced gheer-ring)
To remember the definition of the word gearing, use the following mnemonic:
The gears are in two rings (gearing) and they show the comparison between the value of the company and the amount borrowed.
Examples of gearing (company) in a sentence
The rise in the companies' income gearing has stabilised.
They found that the gearing did not significantly increase the overall cost of funds to the firm.
Gearing currently stands at about 75%.
