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Crm book value of debt3/30/2024 Depending on the industry, a gearing ratio of 15% might be considered prudent, while anything over 100% would certainly be considered risky or 'highly geared'. The gearing ratio shows how encumbered a company is with debt. If the value is negative, then this means that the company has net cash, i.e. It uses the book value of equity, not market value as it indicates what proportion of equity and debt the company has been using to finance its assets. The formula is : (Total Debt - Cash) / Book Value of Equity (incl. This is measured using the most recent balance sheet available, whether interim or end of year and includes the effect of intangibles. It is calculated by dividing its net liabilities by stockholders' equity. Net Gearing, or Net Debt to Equity, is a measure of a company's financial leverage.
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