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# Workbook Question 5.2 (Osbourne Books)

John_Clyne
Registered Posts:

**26**
Hi all, could someone please explain how to work out the Gearing Ratio % for the question above. Thanks in advance.

0

## Comments

188Debt x 100 / Debt + Equity.

Cannot see any question above though?

26I'm sure my book describes the formula as:

(Debt / Debt + Equity) x 100

Perhaps its a typo by Osborne.

25159You could even do:

(100/(Debt+Equity)) x Debt or (1/(Debt+Equity)) x Debt x 100

Unfortunatly I don't have my osborne books on hand at work anymore so can't see the question.

I will add that written convention would have it as

(Debt/(Debt+Equity)) x 100

This is simply because the x 100 just converts the decimal ratio to a percentage

ACCA in progress

F4- Passed Aug 2020

F6- Sitting September 2020

188Hi John,

Sorry but I don't have the text book so unsure of the exact question. I believe both formulas work but I always used debt x 100 / debt + equity.

Thank you

4444