Finance

What is Operating Gearing? Meaning, Formula, Example, and Usages

Meaning of Leverage/gearing Leverage refers to increased means of accomplishing the purpose of the company. In the financial world, leverage refers to the ability to use fixed-cost assets or funds to increase the return to its shareholders. The leverage related to investment activities is called operating leverage. Operating leverage. Operating leverage is caused by to …

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7 Types of Long-term Debt: Definition, and Explanation

Definition: Long-term debts are non-current liabilities with obligations beyond one year. Long-term debt can be viewed from two perspectives: financial statement reporting by issuer and financial investing. The balance sheet must record long-term debts and the related payment obligations in the non-current section of the balance sheet. On the other hand, investing in long-term debt …

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