Gearing Ratio | A-Level, IB & BTEC Business

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shut up

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savage

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Many thanks Jamie - what lovely feedback. Very much appreciated!

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Such a calm delivery, the information was provided in a concise manner and very easy to understand. Many thanks.

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Helped me out with a year 3 of University level study assignment. Thank you!

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Clear and concise. Great presentation

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oh my god thank you so much i finally understand...

[@tutor2u-official]

Glad it helped!

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Thank very much for this upload this really helped me write my finance report

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Great content!😀

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Very useful, thank you!

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Pleasure!

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EXCELLENT

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Thanks for listening

[@ugyenadventure4227]

Thank you

[@craigjames4343]

I'm running at 42% Capital. It's difficult fighting the urge to expand and increase your profits.

[@MrDenysJoke]

thanks g

[@stessyangeck8657]

What if the business doesn't have consistent strong profits and cash flows, which gearing ratio is advisable as most preferable to use?

[@tutor2u-official]

In that situation, a relatively low (or even zero) gearing ratio might be safest for the business. Interest has to be financed from somewhere - and the cash flows from profits are a good place

[@classiccatastrophe1518]

@@tutor2u-official thank you so much on point explanation sir

[@managingstrategy5137]

hello tutor2u, can you provide me with the refernce of the gearing ratio

[@trentthai]

Hi, if a company has zero % gearing, what does it mean?

[@shannonhe]

gearing ratio is calculated by (loan capital/ total capital employed)*100. The only way for that to be 0% is for the numerator of the fraction to be 0, so loan capital = 0. Simply means that this business does not have any bank loans

[@mosian808]

total debt=non current liabilities?

[@tutor2u-official]

Correct

[@jackelveyder]

TA - TL ??????

[@broccolihighkicks3857]

Here in 2022 when interest rates are sky high! 😂

[@tutor2u-official]

Gearing will be a huge corporate issue in 2023! Thanks for visiting the channel, hope it was useful

[@broccolihighkicks3857]

@@tutor2u-official it was very helpful and clear thank you!