# gearing

/ˈɡɪɹɪŋ/ (US) · /ɡˈiəɹɪŋ/ (UK)

Source: https://englishreference.com/word/gearing
Updated: 2026-08-08

## Senses

### 1. mechanical gear ratio

noun · CEFR B2 · Technical

the set of gears in a machine or the way they are connected to control speed and power.

For teachers: the arrangement or ratio of a system of gears in a machine, determining the relationship between the speed of the engine and the speed of the wheels.

- The bike's low gearing makes it much easier to pedal up steep hills.
- Engineers adjusted the final gearing of the prototype to ensure maximum fuel efficiency during long-distance highway cruising.

Usage: Often used as an uncountable noun when referring to the ratio itself.

### 2. financial leverage

noun · CEFR C1 · British English · Technical

the relationship between how much money a company has borrowed and the value of the shares it owns.

For teachers: the ratio of a company's loan capital (debt) to its equity capital (shareholders' funds).

- The company is worried that its high gearing makes it a risky investment.
- The firm’s aggressive gearing strategy left it vulnerable to sudden interest rate hikes, as debt servicing costs began to consume all liquid profits.

Teaching tip: This sense is primarily used in British English; American English speakers almost exclusively use 'leverage' for this concept.

### 3. preparing or adjusting

verb · CEFR B2

the act of preparing for something or adjusting something to fit a specific need.

For teachers: the present participle of 'gear', used to describe the process of preparing for an event or adjusting a system for a specific purpose.

- The city is gearing up for the international film festival next month.
- By gearing their marketing strategy toward younger consumers, the brand managed to revitalise its image within a single fiscal year.

Usage: Frequently appears in the phrasal verb 'gearing up' followed by the preposition 'for'.

## Examples

- The company's high gearing makes it a risky investment.
- During the recession, firms with high gearing struggled to meet their interest payments as revenue declined.
- The board proposed a new share issue to raise equity and reduce the firm's gearing, aiming to improve the credit rating before the next round of expansion.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.