'Gearing up' refers to increasing the levels of financial or operation gearing - or both - within an organisation.
The intention of gearing up is to improve expected net results.
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.
- Nissan X-Trail to be manufactured in Japan, not UK
- '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.