Gearing Ratio: Formula, Worked Example and What Is Good
Gearing measures how much of a business is funded by borrowing rather than by its owners. There are at least five versions of the formula in common use, and on one ordinary UK printing company they give answers from 40% to 123%. Here is how to calculate it, which version to use, what counts as high, and what the 2026 lease rules and a 3.75% base rate are doing to the number.
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