Wjo Knows the formula for the Gearing Ratio?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Please could someone help, I have left my notes at work, but can't remember how to do the gearing ratio......

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Wjo Knows the formula for the Gearing Ratio?

    Hi Beka

    The gearing ratio is:

    Loan Capital divided by Capital Employed x 100


    Regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Wjo Knows the formula for the Gearing Ratio?

    Long term debt / (Long term debt + Equity) x 100

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