September 2025 ACCA Exam results

Post comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Operational gearing

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 24, 2021 at 4:27 pm #621651
Syed Ahsan Ali
Participant
- Topics: 136
- Replies: 85
Is it true that Operational gearing is used to measure the business risk of the company?
It can be calculated as (Contribution / Profit before Interest & Tax)?
What exactly are we looking for using this formula?
May 25, 2021 at 7:45 am #621686
John Moffat
Keymaster
- Topics: 57
- Replies: 54765
No. Operating gearing is one factor that affects the riskiness of a business.
As to what we are looking at, please watch my free lecture working through Chapter 13 of our free lectures notes.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.