Calculating Financial Gearing




Debt to Equity Ratio
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Mohamed, UK

Calculating Financial Gearing

Hello there. I need some help on how to calculate financial gearing by using debenture market price and how to find or calculate the market price. I know that the financial gearing formula is = D / D + E but I am facing some difficulties to understand it.
 
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Nayan Shah
Student (MBA), United Kingdom
 

Financial Gearing

Hi, I did some research and on online I found two formulas one is the one you mentioned and the other is D / E. Apparently there are two methods of calculating it. I believe from what I gathered it focuses on how will a company utilize its equity funds towards paying off its long term liabilities quicker. But please don't quote me on it as I could have misinterpreted it.

   

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👀Calculating Financial Gearing
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