Capital leverage involves a company’s ability to acquire new assets or divert funds to support operations while remaining solvent. The process involves risk analysis, debt/equity ratio calculation, and assessing short and long-term impacts. The approach varies between businesses and industries and should be reassessed periodically. Capital leverage has to do with how a company engages […]

Capital gearing is the process of how a company manages its leverage, focusing on remaining creditworthy while acquiring new assets. It involves risk analysis, debt-to-equity ratios, and planning strategies to make the most of assets. The process varies among businesses and needs to be re-evaluated regularly. Capital gearing has to do with how a company […]