highly geared

highly geared
highly geared ˌhighly ˈgeared , ˌhighly ˈleveraged adjective FINANCE
1. having a lot of debt in relation to Share This is important when considering the cost of repaying debt in relation to paying dividend S to shareholder S, and in questions of ownership of the company:

• Many firms are highly geared, having borrowed to expand their businesses. Now, with incomes falling, interest payments are almost impossible to meet.

• There still are many highly leveraged companies that are close to defaulting.

2. a highly leveraged or highly geared loan etc is one where a lot of money is borrowed in relation to the amount of capital already held by the borrower:

• Highly geared first-time buyers were especially at risk when interest rates began rising.

• a bank that lent money to finance a highly leveraged transaction that failed

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highly geared UK US adjective UK (US highly leveraged) FINANCE
used to describe a company that has a large amount of debt compared to its share capital, (= money in shares) or the structure of such a company's capital: »

Companies with high debts are 'highly geared', and face financial difficulties if their profits fall or interest rates rise.


The company's board said it would not support the highly leveraged capital structure of the proposed buyout offer.

used to describe a person who has borrowed a large amount of money compared to their income or the amount of capital they already have: »

US homes are about as strongly rated as UK ones but the US consumer is even more highly geared than the UK one.

Financial and business terms. 2012.

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Look at other dictionaries:

  • highly geared — (of a company or its capital) having a high ratio of borrowing in relation to owners capital, or of debt to equity • • • Main Entry: ↑gear …   Useful english dictionary

  • highly-geared — /haɪli ˈgɪəd/ (say huylee geard) adjective 1. having a high gear ratio. 2. Economics highly leveraged: highly geared mortgages. See gearing (def. 3) …  

  • highly-geared company — /ˌhaɪli gɪəd kʌmp(ə)ni/ noun company which has a high proportion of its funds from fixed interest borrowings …   Dictionary of banking and finance

  • geared — [gɪəd ǁ gɪrd] adjective FINANCE geared investments, shares etc are bought with money that has been borrowed: • Using dividends from the security to pay the annual interest and help repay the loan used to purchase the security effectively creates… …   Financial and business terms

  • highly leveraged — UK US adjective US FINANCE ► HIGHLY GEARED(Cf. ↑highly geared) …   Financial and business terms

  • leveraged — lev‧er‧aged [ˈliːvərɪdʒd ǁ ˈle , ˈliː ] adjective FINANCE 1. a leveraged company is financed by a high level of borrowing in relation to its share capital (= the money it has from selling its shares ) : • The company is profitable even though it… …   Financial and business terms

  • Court Line — (Aviation) IATA OU ICAO Callsign Founded 1957 (as Argus Air Transport) Ceased operations 1974 …   Wikipedia

  • debt–equity ratio — A ratio used to examine the financial structure or gearing (leverage) of a business. The long term debt, normally including preference shares, of a business is expressed as a percentage of its equity. A business may have entered into an agreement …   Accounting dictionary

  • gearing — capital gearing; = equity gearing; = financial gearing; = leverage The relationship between the funds provided to a company by ordinary share holders and the long term funds with a fixed interest charge, such as debentures and preference shares.… …   Accounting dictionary

  • gearing — / gɪərɪŋ/ noun the act of borrowing money at fixed interest which is then used to produce more money than the interest paid COMMENT: High gearing (when a company is said to be ‘highly geared’) indicates that the level of borrowings is high when… …   Dictionary of banking and finance

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