ratio Archives – iExplainD

Gearing Ratio Definition Explanation & Formula

Gearing ratios represent a group of financial ratios that compare some form of owner’s equity (or capital) to debt, or funds borrowed by the company.

Debt equity ratio means how much capital, equity or money a company has to repay its borrowed money.

Coverage ratio represents a company’s ability to service its debt and meet its financial obligations such as interests payments or dividends.