Sajitha posted an Question
September 24, 2020 • 15:35 pm 30 points
  • UGC NET
  • Management

What is meant by company with high gear policy?

what is meant by company with high gear policy? is it followed during inflation or deflation?

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  • Kalai best-answer

    Gearing refers to the relationship, or ratio, of a company's debt-to-equity (D/E). Gearing shows the extent to which a firm's operations are funded by lenders versus shareholders—in other words, it measures a company’s financial leverage. When the proportion of debt-to-equity is great, then a business may be thought of as being highly geared, or highly leveraged.

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