Table:
|  | As of December 31, |  |
| --- | --- | --- |
|  | 2018 | 2019 |
| Borrowings, current portion | 520,550 | 255,422 |
| Borrowings, non-current portion | 2,307,909 | 2,891,973 |
| Lease liabilities, current portion | 6,675 | 9,363 |
| Lease liabilities, non-current portion | 199,424 | 195,567 |
| Total debt | 3,034,558 | 3,352,325 |
| Total equity | 1,983,122 | 1,649,853 |
| Total debt and equity | 5,017,680 | 5,002,178 |
| Gearing ratio | 60.48% | 67.01% |
Paragraphs:
GasLog Ltd. and its Subsidiaries
Notes to the consolidated financial statements (Continued)
For the years ended December 31, 2017, 2018 and 2019
(All amounts expressed in thousands of U.S. Dollars, except share and per share data)
25. Capital Risk Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholders value.
The Group monitors capital using a gearing ratio, which is total debt divided by total equity plus total debt. The gearing ratio is calculated as follows:
Question:
How is gearing ratio calculated?
Answer: total debt divided by total equity plus total debt