It measures the percentage of capital employed that is financed by debt and long term financing. The higher the gearing, the higher the dependence on borrowing and long term financing. Whereas, the lower the gearing ratio, the higher the dependence on equity financing. Traditionally, the higher the level of gearing, the higher the level of financial risk due to the increased volatility of profits. Financial manager face a difficult dilemma. Most businesses require long term debt in order to finance growth, as equity financing is rarely sufficient, on the other hand, the introduction of debt and gearing increases financial risk. A high gearing ratio is positive; a large amount of debt will give higher return on capital employed but the company dependent on equity financing alone is unable to sustain growth. Gearing can be quite high for small businesses trying to become established, but in general they should not be higher than 50%. Shareholders benefit from gearing to the extent that return on the borrowed money exceeds the interest cost so that the market value of their shares rise.
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1) bit error rate. The ratio of received bits that contain errors.
2) basic encoding rules. Rules for encoding data units described in the ISO ASN.1 standard.
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It is a common term in the field of economics. In healthcare business, this refers to a ratio or index of the annual change in the prices of goods and services providers used to produce health services.
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It is the ratio of the plastic section modulus Z to the elastic section modulus S or the ratio of the plastic moment Mp to the yield moment My.
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These are two angles or other structural shapes connected from the top chord of one joist to the bottom chord of the next joist to form an 'X' shape whose l/r ratio cannot exceed 200. The bridging members are almost always connected at their point of intersection.
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These are two angles or other structural shapes connected from the top chord of one joist to the bottom chord of the next joist to form an 'X' shape whose l/r ratio cannot exceed 200. The bridging members are almost always connected at their point of intersection.
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