Gearing

What Does Gearing Mean?
A fundamental analysis ratio of a company's level of long-term debt compared to its equity capital. Gearing is expressed in percentage form.

Companies with high gearing - more long-term liabilities than shareholder equity - are considered speculative.

Also known as "financial leverage".

Investopedia explains Gearing
In simpler terms, gearing explains how a company finances its operations - either through outside lenders or through shareholders.