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What’s It Mean?
Gearing
Gearing represents the level of borrowings, expressed as a percentage, on the value of assets:
Example:
|
Assets worth |
- |
$540,000 |
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|
Borrowings |
- |
$286,000 |
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|
|
|
|
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|
Gearing: |
|
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|
|
$286,000 |
|
x |
|
100 |
|
||||||
|
|
$540,000 |
|
|
1 |
|
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|
|
|
|
|
|||||||||
|
|
= |
53% |
|
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 |
 |
 |
 |
 |
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Liability limited by a scheme approved under Professional Standards Legislation.