How to calculate Gearing Ratio :

Gearing :

Gearing refers to the mix of debt and equity funding that a business uses to finance its assets. Gearing is also called as Leverage.

Gearing Ratio :

A gearing ratio is a type of financial ratio that compares company debt relative to different financial metrics, such as total equity, total debt, debt to equity ratio.

Debt-to-Equity Ratio Formula :

The formula for debt-to-equity ratio is expressed as a total debt of the company divided by its total equity.

Debt-to-Equity Ratio = Total DebtTotal Equity

Equity Ratio Formula :

The formula for equity ratio is expressed as total equity of the company divided by its total assets.

Equity Ratio = Total EquityTotal Assets

Debt Ratio Formula :

The formula for debt ratio is expressed as the total debt of the company divided by its total assets.

Debt Ratio = Total DebtTotal Assets