gearing: meaning, definition, pronunciation and examples
C1Technical / Business
Quick answer
What does “gearing” mean?
The arrangement or ratio of gears in a machine.
Audio
Pronunciation
Definition
Meaning and Definition
The arrangement or ratio of gears in a machine; the process of engaging or connecting gears.
In finance and business, the ratio of a company's debt to its equity capital, indicating financial leverage and risk.
Dialectal Variation
British vs American Usage
Differences
The financial term is 'gearing' in UK English and 'leverage' in US English. The mechanical sense is identical.
Connotations
In UK business, 'high gearing' directly signals high debt risk. In US English, 'leverage' can have a more neutral or even positive connotation of using resources effectively.
Frequency
The financial sense is far more frequent in UK English than in US English, where 'leverage' is standard.
Grammar
How to Use “gearing” in a Sentence
Noun + of + gearing (e.g., level of gearing)Adjective + gearing (e.g., high gearing)Verb + gearing (e.g., calculate the gearing)Vocabulary
Collocations
Examples
Examples of “gearing” in a Sentence
verb
British English
- The mechanic is gearing the transmission for better fuel economy.
- The company is gearing up its production for the Christmas rush.
American English
- The team is gearing the engine for more low-end power.
- We are gearing up for the product launch next month.
adverb
British English
- [No adverbial form.]
American English
- [No adverbial form.]
adjective
British English
- [No standard adjectival use. 'Gearing' is a noun or part of a compound noun like 'gearing system'.]
American English
- [No standard adjectival use. 'Gearing' is a noun or part of a compound noun like 'gearing mechanism'.]
Usage
Meaning in Context
Business
The board is concerned about the company's high gearing and its vulnerability to interest rate rises.
Academic
The study analysed the impact of corporate gearing on investment behaviour during economic downturns.
Everyday
I couldn't find the right gearing on my bike for such a steep hill.
Technical
The engineer recommended a change in the transmission's gearing to improve torque at lower speeds.
Vocabulary
Synonyms of “gearing”
Strong
Neutral
Vocabulary
Antonyms of “gearing”
Watch out
Common Mistakes When Using “gearing”
- Using 'gearing' in US financial contexts (use 'leverage').
- Confusing 'gearing' (noun) with 'gearing up' (phrasal verb meaning preparing).
- Misspelling as 'geering'.
FAQ
Frequently Asked Questions
In finance, they are conceptual synonyms, but 'gearing' is the standard UK term, while 'leverage' is standard in US English.
Yes, but it's less common. 'To gear' means to equip or adjust with gears. The phrasal verb 'gear up' (to prepare) is more frequent.
It's a specific financial metric, usually calculated as debt divided by equity (or a variation thereof), used to assess a company's financial leverage.
It depends on context. In mechanics, it might be desirable for speed. In finance, high gearing (high debt) increases potential returns but also significantly increases risk, especially in economic downturns.
The arrangement or ratio of gears in a machine.
Gearing is usually technical / business in register.
Gearing: in British English it is pronounced /ˈɡɪərɪŋ/, and in American English it is pronounced /ˈɡɪrɪŋ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “[No common idioms for 'gearing'. The word itself is technical.]”
Learning
Memory Aids
Mnemonic
Think of GEARing up a mountain bike: you change the GEAR ratio. A company with high GEARing has shifted its financial 'ratio' towards debt.
Conceptual Metaphor
FINANCIAL RISK IS MECHANICAL STRESS (High gearing puts the company under strain, like a machine in too high a gear).
Practice
Quiz
In which context would a US business executive be MOST likely to use the term 'gearing'?