is gearing ratio the same as debt ratio
Answers. Best Answer: The debt/capital ratio (usually referred to as just the 'debt ratio') is a company's total debt divided by its total assets. The debt-equity ratio is a company's total debt divided by its total equity (equity is assets-liabilities).For example, if a company has 1,000,000 in assets, 500,000 in debt, and 250,000 in liabilities, its debt ratio is 50% but its debt-equity ratio is 67%.he debt-equity ratio is a company's total debt divided by its total equity (equity is assets-liabilities).