Briefly describe what a gearing/capital structure ratio is

Briefly describe what a gearing/capital structure ratio is

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They are also called leverage ratios. They indicate the extent to which the firm has used externally borrowed fixed return/charge capital (preference share capital and long term debts) to finance the assets of the firm and subsequently increase/gear up/ level up profitability of the firm. They include: -

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Titany answered the question on December 14, 2021 at 06:39

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