Gearing Ratio Calculation

Here is a simple online calculator to find out the gearing ratio related to the accounting and finance. It refers to the fundamental analysis ratio of a company's level of long-term debt compared to its equity capital. In the calculator below enter the values for Total Debt (Including Short team, Long Term and Bank overdrafts) and the value for Shareholder's Equity to find out the net gearing ratio in %.

Net Gearing Ratio Calculator

%

Here is a simple online calculator to find out the gearing ratio related to the accounting and finance. It refers to the fundamental analysis ratio of a company's level of long-term debt compared to its equity capital. In the calculator below enter the values for Total Debt (Including Short team, Long Term and Bank overdrafts) and the value for Shareholder's Equity to find out the net gearing ratio in %.

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Formula:

Gearing Ratio = (Total Debt / Shareholder's Equity) x 100

The net gearing ratio for real estate investment trusts can be calculated by dividing gross borrowings by the total assets, based on the latest valuation of the REIT.

Example

If a company has total debt of 160,000 and the share holders equity is 500,000, then the gearing ratio is calculated as,

Gearing ratio = (Total Debt / Shareholder's Equity) x 100
     = (160000 / 500000) x 100
Therefore, the GR value is 32 %

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