Calculating Financial Gearing

Debt to Equity Ratio
Knowledge Center


New Topic


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.

  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.

Participate and leave a comment
Exchanging your ideas stimulates your personal and professional development. And you can help other people! Please motivate your point of view. You can still edit your comment for 3 hours.

Start a new forum topic


More on Debt to Equity Ratio
Calculating Financial Gearing
🔥Excluding IC Liability from Total Debt
Special Interest Group

Are you interested in Debt to Equity Ratio? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Debt to Equity Ratio
Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 17-5-2021. All names of their owners.