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Gearing

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Gearing
Gearing, called leverage in the US and some other countries, measures the extent to which a company is funded by debt. One common definition is:
debt ÷ shareholders funds ...

 


Gearing, which is synonymous with leverage, can be used in two ways. The first refers to the extent to which a company is funded by debt and can be calculated by dividing its debt by shareholders' funds.

gearing
Definition 1.
The ratio of a company's long-term funds with fixed interest to its total capital. A high gearing is generally considered very speculative.

gearing ratios - Related Articles
Measuring Gearing
Checklists
The three most common examples of gearing ratios are: ...

gearing

Also called leverage. The amount of debt a company has as a proportion of its equity capital. A highly geared (or leveraged) company is one with a high debt/equity ratio.

Gearing (called leverage in the U.S.) needs to be managed carefully - it can at best, enhance investment returns - and at worst increase losses.

GEARING - Buy a house for £100,000 with a deposit of £10,000 and the rest as a mortgage. Six months lat...
GEARING RATIO - measures the percentage of capital employed that is financed by debt and long term fina...
GEM - graduated-equity mortgage ...

Negative Gearing Issue Sheet for the Australian federal election, 2004
Australian Taxation Office Rental Properties Guide 2005, product NAT 1729-6.2005
Real Estate Institute of Australia Policy Statement on Negative Gearing, as of October 2005 ...

Gearing:
This indicates the degree of a company's indebtedness. The most common measures of corporate indebtedness are the debt ratio (measuring the share of the company's capital which is in the form of debt) and the debt-equity ratio (the ...

Gearing
Most commonly used to describe the level of company debts compared to its equity capital. The gearing ration expresses this as a percentage.

Gearing
Gearing (also known as leverage) is where an investor or company, borrows money in order to enhance investment returns.

Gearing (AKA: leverage) - The relationship between funds raised from loans and issuing shares. The comparison of a company's long term fixed interest loans compared to its assets. In general two different methods are used: 1.

Gearing
A company's debts expressed as a percentage of its equity capital. High gearing means debts are high in relation to equity capital.
General Obligation (GO) Bond ...

Gearing
A measure of indebtedness, i.e. the extent of borrowing as against the equity held by a person or company in an asset. The ability to increase exposure by investing in futures contracts without making the underlying cash available.

Gearing
Financial leverage.
GEM (growing equity mortgage)
Mortgage in which annual increases in monthly payments are used to reduce outstanding principal and to shorten the term of the loan.

Gearing
Gearing is a feature of leveraged instruments such as covered warrants, futuresand options. In an option, by investing a small amount called the option premium, investors can multiply their gains since returns are magnified. ...

Gearing
A company's debt expressed as a percentage of its equity; also known as leverage. (See also capital structure and leveraged buy-out.)
General Agreement on Tariffs and Trade ...

Gearing:
When a company's debts are expressed as a percentage of its equity capital. A high gearing would signify debts are high in relation to equity capital. Also known as leverage.

Gearing: (a) Borrowing specifically to fund an investment, e.g. to buy shares or purchase a house using a mortgage, or (b) A measure of the debt ratio, which is the amount of borrowing compared with the equity in an asset.

Gearing/Leverage
Measure of the extent to which a company is funded by borrowings rather than shareholders' equity. A highly geared/leveraged company carries a lot of debt.
General insurance/Property and Casualty Insurance ...

Gearing
The ratio of the share price to the warrant price (multiplied by the conversion ratio, if applicable).

Gearing - the ratio of your own money versus borrowed money in an investment. A 'highly geared' property has a high ratio of borrowed funds to owner's funds.

Gearing
The gearing of a business refers to the percentage of money borrowed from the bank compared to money provided by the owners and other investors.

Gearing: A measure of leverage such as the ratio of debt to equity or debt to total capitalization.
General Partner: The partner with unlimited liability.

gearing
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Gearing’ describes the level of company debts, expressed as a percentage of its equity capital. So a company with a gearing ratio of 60% has levels of borrowing which are 60% of its equity capital.

Gearing - Is a measure of exposure. It relates the number of warrants that can be purchased for the same price of the stock. For example, if the stock is trading at 150 and the warrants are trading at 30, then the gearing is 5.00 or 5-to-1.

Gearing
The gearing ratio is calculated by dividing net debt by share capital.
Goodwill ...

Gearing Ratio
A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds.

Leverage (Gearing)
Leverage is the ratio of debt to total capital or to risk capital. In the example at the end of the previous chapter the Balance Sheet included the following (the percentages have been added): ...

Leverage, or gearing, is the extent to which an economic entity funds itself with borrowed money rather than with the equity. Leverage is measured as debt/assets or debt/equity.

gearing In finance, gearing is the general term used to describe the ratio between an... GEL The ISO currency code for the Georgia Lari. general account A margin account provided to a customer by a particular brokerage. Regulation...

Leverage: another word for gearing.
LIFO: Last in first out - a valuation method for fungible items where the newest items are assumed to be used first. Means stocks will be valued at old prices.

GEARING Term broadly used in the context of a company's debt/equity ratio. A company is highly geared if the ratio of debt to equity is high. Sometimes referred to as capital gearing or leveraging.

Gearing
The most common use of the term 'gearing' is to describe the level of a company's net debt (net of cash or cash equivalents) compared with i...(Read more)
Gearing Of Warrant ...

You can't turn on the TV today without hearing about all the politicians gearing up for the election in 2012. With so much negativity in the economy, this next election is going to be a mudslinging bloodbath.

[1] Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage.

They include the Gearing and Interest Cover ratios and measure the extent to which the capital employed in the business has been financed either by shareholders or by borrowing and long term finance.

(the same as British "gearing") [e]
LIBOR [r]: (London Interbank Offer Rate) the rate of interest at which a group of banks (16 banks from seven countries, including the United States, Switzerland and Germany) are willing to lend to each other for ...

used to account for inflation by comparing the current-dollar gross domestic product GDP to constant-dollar GDP as a ratio. The ratio accounts for price changes of goods and services that make up GDP and changes in the composite of GDP.
Gearing ...

However, spread betting is better suited for experienced investors who are well aware of the risks associated with gearing and margins.

For example, an option is said to have high leverage compared to the underlying stock because a given price change in the stock may result in a greater increase or decrease in the value of the option. Also, commonly known as Gearing in Europe.

See also: Banks, Expense, Mergers, Capital structure, Values

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