Gearing Ratio | A-Level, IB & BTEC Business

This revision video explains the concept of gearing and illustrates how the main gearing ratios are calculated and interpreted.

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VIDEO TIMESTAMPS
0:00 Introduction
0:13 What is Gearing?
0:58 Two Ways of Measuring Gearing
1:32 What is the Capital Structure of a Business?
2:58 Examples of Two Different Capital Structures
4:42 Capital Structure Objective: The Debt / Equity Ratio
5:25 Capital Structure Objectives
7:03 The Gearing Ratio (%)
7:50 Simple Example of Gearing %
8:59 Evaluating the Gearing %
9:39 Benefits of High Gearing
10:34 Benefits of Low Gearing

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[harmonymuringani]

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[prueXo]

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[PENGthing]

Such a calm delivery, the information was provided in a concise manner and very easy to understand. Many thanks.

[JuttMC]

Helped me out with a year 3 of University level study assignment. Thank you!

[ABC]

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[tugbaguler]

Thank you very much for such as a great lecture

[ftrbnd]

oh my god thank you so much i finally understand...

[AlexC]

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[adnanabdi]

Thank very much for this upload this really helped me write my finance report

[suellenrodrigues]

you have just saved my sanity !! thank you

[craigjames]

I'm running at 42% Capital.
It's difficult fighting the urge to expand and increase your profits.

[stessyangeck]

What if the business doesn't have consistent strong profits and cash flows, which gearing ratio is advisable as most preferable to use?

[trentthai]

Hi, if a company has zero % gearing, what does it mean?

[managingstrategy]

hello tutor2u, can you provide me with the refernce of the gearing ratio

[broccolihighkicks]

Here in 2022 when interest rates are sky high! 😂