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what is the link between operational gearing and financial gearing

It is likely that a business with high operational gearing will have low financial gearing, and a business with high financial gearing will have low operational gearing. This is because managers will be concerned to avoid excessive levels of total risk, i.e. the sum of business risk and financial risk.

A business with a combination of high operational gearing and high financial gearing clearly runs an increased risk of experiencing liquidity problems, making losses and becoming insolvent