Formula
to calculate gearing ratio:
Gearing
Ratio = long term debt /
shareholders equity.
Gearing
ratio (long term debt to shareholders equity) definition
and explanation:
The long
term debt to shareholders equity ratio is also referred
to as the gearing ratio.
A high gearing
ratio is unfavorable because it indicates possible
difficulty in meeting long term debt obligations.
The long term debt to shareholders equity ratio is included in
the financial statement ratio analysis spreadsheets
highlighted in the left column, which provide
formulas, definitions, calculation, charts and
explanations of each ratio.
The long term debt to shareholders equity (gearing)
ratio is listed in our liquidity
ratios.
| The long term debt to
shareholders equity ratio and other ratios are key
to understanding financial statements. Our
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Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios are calculated
and explained in our spreadsheets.
The long term debt to
shareholders equity may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
Order free 3 ratio
calculator spreadsheet. Current, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at 3ratios@bizwiz.ca.
Click here
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accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
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