CAIE A-Level Business Formula reference Gearing ratio

CAIE A-Level Business Formula reference Gearing ratio
Cambridge International AS & A Level Business 9609 syllabus for exams in 2026, 2027 and 20282026–2028

Practise using the gearing formula with table data and interpreting the percentage as a measure of dependence on debt finance.

How this is tested

  • calculate gearing as non-current liabilities divided by capital employed times 100
  • interpret a gearing percentage to judge reliance on long-term borrowed capital

Question 4(a)

[Maximum number: 4]

Refer to Table 1.2. Calculate the gearing ratio for 2023.