View source for Gear up

'Gearing up' refers to increasing the levels of financial or operation gearing - or both - within an organisation.<br />
The intention of gearing up is to improve expected net results.  <br />
A consequence of gearing up is normally to increase risk, and the cost of equity capital.


Many financial problems have been a consequence of gearing up (or leveraging) excessively in earlier periods.


:<span style="color:#4B0082">'''''Nissan X-Trail to be manufactured in Japan, not UK'''''</span>

:'Nissan’s decision to keep X-Trail production in Japan... represents the cancellation of increased capacity in Sunderland and the creation of a so-called “super site”, which local component makers had been gearing up to supply. 

:Mike Matthews, former managing director of Nifco, an automotive parts manufacturer based in Stockton-on-Tees which supplies makers including Nissan, said: “The Nissan announcement will be a big disappointment. When X-Trail was originally announced, it was big news... 

:“In the supply chain, companies will have already factored the new X-Trail into their sales and will now be faced with a challenge of how to meet those sales figures.”'

:''i News, 4 February 2019.''


==See also==
* [[Balance sheet ratio]]
* [[Cost of equity]]
* [[Gearing]]
* [[Guide to risk management]]
* [[Leverage]]
* [[Leveraged takeover]]
* [[Supply chain]]

[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]