1) Sir if we use the formula VC divided by FC for calculating operational gearing, so here it means that operational gearing is directly proportional to VC and operational gearing is inversely proportional to FC. So it does means that greater the VC the greater the operational gearing and viceversa. And the greater the FC the lower the operational gearing and vice versa. Am I right?
2) But if we use the formula FC divided by VC for calculating operational gearing, so here it means that operational gearing is directly proportional to FC and operational gearing is inversely proportional to VC. So it does means that greater the VC the lower the operational gearing and viceversa. And the greater the FC the higher the operational gearing and vice versa. Am I right?
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8y ago#1You are right on both counts, and again there is no standard measure for operating gearing.
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