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gearing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › gearing

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.
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  • June 5, 2021 at 1:41 pm #623285
    Noah098
    • Topics: 936
    • Replies: 352
    • ☆☆☆☆☆

    sir my exam kit says that “reduction in equity means that gearing ratio will deteriorate”

    Isnt this wrong?

    Reduction in equity should increase gearing, right?

    June 6, 2021 at 1:08 pm #623436
    Stephen Widberg
    Moderator
    • Topics: 10
    • Replies: 2523
    • ☆☆☆☆☆

    Increased gearing = bad = deteriorate

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