Definition
Gearing Ratio – A leverage measure, commonly calculated as total borrowings and notes payable divided by total equity attributable to equity holders, showing how much of a company's capital structure is funded by debt versus shareholder equity. A rising gearing ratio signals a company is leaning more on borrowed capital — useful context alongside the balance sheet's own debt figures, especially when a company is timing new borrowings around a bond redemption or other refinancing. Found In: Management Discussion and Analysis (liquidity and capital resources section)