Capital Gearing

Very British term for leverage...AKA financial leveraging, or kicking it into gear...this British term refers to the ratio between the amount of debt you have versus the amount of equity you have. And hopefully you have more equity than debt (because investors and lenders look to this gearing ratio to determine a company's overall financial health). The level of this ratio can determine whether or not you can meet your future debt obligations during slower revenue periods.

A high gearing ratio indicates that a company is holding more debt relative to their equity, which is not necessarily a bad thing (unless the ratio is something like 10.0, which means their debit is 10 times the amount of their equity...and more than likely is bound to sink like the Titanic).

A low gearing ratio is just the opposite. Your equity is higher than your debt and you are well positioned to make lots of moolah.