The word "gearing" is spelled with two syllables, with the emphasis on the second syllable. Its phonetic transcription is [ˈɡɪərɪŋ]. The first syllable is pronounced with a short "i" sound, as in "hit", followed by a long "e" sound, as in "beet". The second syllable is pronounced with a short "i" sound, like "hit", followed by the "ng" sound as in "sing". "Gearing" refers to the system of gears used to transmit torque or power from one shaft to another.
Gearing is a term used to describe the financial leverage or the ratio of debt to equity employed by a company to finance its assets. It refers to the level of borrowing or debt a company utilizes to fund its operations and investments. Gearing is also known as leverage or leverage ratio.
The gearing ratio is calculated by dividing the company's total debt by its shareholders' equity. This ratio determines the proportion of a company's capital structure that is financed by debt and indicates the level of financial risk the company may be exposed to. A high gearing ratio implies that a substantial portion of the company's assets are financed by debt, which can increase the risk for the shareholders.
Gearing can have both positive and negative effects on a company. On one hand, it can amplify the company's returns on investment and improve the profitability of shareholders' equity. On the other hand, high gearing levels can also increase the company's financial vulnerability, especially in times of economic downturn or rising interest rates.
It is important for investors and analysts to analyze the gearing ratio of a company to assess its financial stability and risk profile. This analysis can help determine the company's ability to meet its debt obligations, its capacity to generate sufficient cash flow, and its susceptibility to changes in interest rates or market conditions.
Harness; a series of toothed wheels for effecting and directing motion.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
The word "gearing" comes from the Old English word "gearwe", which originally referred to "equipment" or "clothing". This word is derived from the Proto-Germanic word "gaerwōną", meaning "to dress" or "to equip". Over time, the meaning of "gearwe" expanded to include the gears or mechanisms used in machinery, resulting in the modern usage of "gearing" to describe the arrangement or system of gears in a mechanism or transmission.