Your Gateway to Financial Literacy
What is Gearing? Gearing, also known as financial leverage or debt-to-equity ratio, represents the relationship between a company’s total debt and its shareholders’ equity. This measure demonstrates how much of a business’s capital comes from external borrowing versus internal financing through equity. A higher gearing ratio implies that a greater
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What is the Accounting Equation? The Accounting Equation, also known as the fundamental accounting equation or the balance sheet equation, provides the foundation for understanding a company’s financial structure by stating that total assets (Assets) equal the sum of its liabilities (Liabilities) and equity (Owner’s Equity). The basic form of
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