Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the difference between gearing ratio and investment ratio ?

user-image
Question added by Muhammad Fiaz , GROUP MANAGER ACCOUNTS, FINANCE AND TAX , SMPL Group of Companies
Date Posted: 2014/05/13
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Gearing ratio focuses on the capital structure of the business. It focuses on the long-term financial stability of a business and measures the proportion of assets invested in a business that are financed by long-term borrowing.

 

Investment ratio is the relationship of gains from investments (including realized capital gains) resulting from insurance operations to earned premiums.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.