A staunch guardian of the good castle "MG" would defend the magic number to the death (or zero percent in this case)....however an independent auditor would look to the D/E ratio rather then the vaguaries of a "gearing ratio" expression as a means of a true assessment of the companies total debt to shareholders equity.
But yes you have added some extra spice into the equation, as debt servicing and dividend payments etc aren't part of the equation to determine either, unless they are deferred liabilities on the balance sheet and then they might apply.
MGC Price at posting:
$1.31 Sentiment: None Disclosure: Not Held
