Gearing ratio


What is the Gearing ratio ? 


The gearing ratio measures in percentage terms the ratio of the company's financial debts (financial debts) to the equity (equity’s book value). It is used to indicate the degree of structural indebtedness of the passive financial composition of the company's balance sheet.




This indicator is a pillar in the financial risk management and analysis. In fact, the gearing ratio, can give important information along a debt ratio financial analysis however it needs an indepth analysis of the financial statement comprised of balance sheets, income statements and cash flow statements because it is not much clear in a first sight. To that extand the XBRL Data Anbalytics Engine gives the solution in a democratic and standardized way.


As we know the level of indebtedness occured in the economy nowadays is still much and the threats of PANDEMIC Covid-19 situations spreaded around the world are a threatening army to sustainability and entrepreneurship. Even if the credit crunch on 2008 has not been completely solved in term of financial risk, it is vital for many large economies to keep track on responsible investments and to create new means of liquidity for enterprises and entrepreneurs. 

An impoirtant solution here with the XBRL Data Analytics Engine is that it is provided by the gearing ratio the general amount along  with a predictive analysis. To this extend, the importance for the stackeholders and primarly for the creditors and the investors to know in advance or event to be able to monitoring and to compare the gearing ratio. 


UNIGIRO is a regtech facilitator. Its dynamic and extensive Key Performance Indicators (KPI) boost real-time monitoring of financial sustainability upgrading risk management regtech tools and corporate social governance.

MONITORING ENTERPRISE CREDIT RISK: the first Smart XBRL Data Analytics Engine Toolkit for Financial Risk Analysis that facilitate Creditors and Investors in monitoring company's creditworthiness and financial sustainability

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