Gearing is a balance sheet ratio - borrowings as a percentage of net debt. $100m assets, $50m debt is a 50% gearing ratio.
Debt to EBITDA is a cashflow ratio - showing whether the debt can be serviced out of the cashflow. $100m debt, $50m cashflow is a multiple of 2x.
The Covenants, page-7
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)