Gearing (also often referred to in German, more rarely as debt-equity ratio)

The ratio of net debt – i.e. long-term financial debt less cash and cash equivalents and marketable securities – to a company’s equity (the ratio of net debt to equity, also called financial leverage). If the gearing ratio is too high, this indicates that the company is highly susceptible to crisis. – In the case of options, the ratio of the price of the underlying asset to the price of the warrant, taking into account the option ratio. – See Working capital, – Cf. ECB Monthly Bulletin of February 2012, p. 97 ff. (Corporate debt in the euro area; detailed presentation; many overviews; comparisons with the USA).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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