Gearing
Gearing represents the level of borrowings, expressed as a percentage, on the value of assets:
Example:
Assets worth – $540,000
Borrowings – $286,000
Gearing:
$286,000 x 100
$540,000 1
= 53%
Gearing
Gearing represents the level of borrowings, expressed as a percentage, on the value of assets:
Example:
Assets worth – $540,000
Borrowings – $286,000
Gearing:
$286,000 x 100
$540,000 1
= 53%