The gearing ratio relates long-term borrowing to equity

Name: The gearing ratio relates long-term borrowing to equity
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Question

Quizplus · Accepted Answer

The gearing ratio (also known as leverage ratio) is a financial metric that measures the proportion of a company's long-term debt relative to its equity. It shows how much the company is relying on borrowed money to finance its operations and growth. Therefore, the statement "the gearing ratio relates long-term borrowing to equity" is true.

The Gearing Ratio Relates Long-Term Borrowing to Equity