Gearing

System

Can someone tell me the correct formula to use for gearing:

Debt/Equity or Debt/Capital Employed?

I am starting to panic now, as there seem to be various ways to calculate this.

Help please!!!

System

Re:Gearing

I think either is acceptable unless the question specifies which formula is to be used. Just make sure you make it clear which formula you are using.

However the one I found easiest to remeber was:

Debt/Capital Employed


Hope this helps
Michelle