How to increase gearing ratio? 2.20K viewsCorporate Finance0 Peavler 0 Comments It can be a simple thing but how can a company increase it’s gearing ratio and what will it mean? Is it bad or good to increase the gearing ratio? 2 AnswersActiveVotedNewestOldest 0 Guest60 Posted 0 Comments Just to add that the external debt can be increased by additional bank loans or by issuing bonds.The capital can be decreased if the company for example buys back some of it’s shares (repurchase) and then cancels these shares. You are viewing 1 out of 2 answers, click here to view all answers. Register or Login Search for: