Gearing ratio
Gearing ratio refers to the fundamental analysis ratio of a company's level of long-term debt compared to its equity capital.[1] The point when processing what amount of debt an organization is undertaking as contrasted with its equity, the debt to equity ratio is generally utilized. Debt to equity ratio is the sum contract taken by the organization divided by the equity of the organization at the point where the ratio is computed.
How to Compute Gearing Ratio
The gearing ratio for real estate investment trusts is calculated by taking the gross borrowings divided by the total assets, based on the latest valuation of the REIT.