A fundamental analysis ratio of a company’s level of long-term debt to its equity capital and is expressed in percentage form. A company with a high gearing and more long-term liabilities than shareholder equity are considered speculative.

Gross Margin Ratio

Gross margin is an ambiguous phrase that expresses the relationship between gross profit and sales revenue. The ambiguity arises because it can be expressed in absolute terms:
Gross Margin = Revenue – Cost of Goods Sold

Gross Profit

The amount of profit available after deducting from sales the direct (variable) costs of labor and materials, plus the applicable costs of the factory overheads applied to the production of goods and services.