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Negative gearing is a form of financial leverage whereby an investor borrows money to acquire an income-producing investment and the gross income generated by the investment (at least in the short term) is less than the cost of owning and managing the investment, including depreciation and interest charged on the loan (but excluding capital repayments).
Negative gearing in Australia deals with the laws in the Australian income tax system relating to net loss suffered by a taxpayer on their investment property, commonly called negative gearing. Negative gearing can arise in a number of contexts; for example, with real estate investments, it arises when the net rental income is less than the ...
An entity's debt-to-equity funding is sometimes expressed as a ratio. For example, a gearing ratio of 1.5:1 means that for every $1 of equity the entity has $1.5 of debt. A high gearing ratio can create problems for: creditors, which bear the solvency risk of the company, and; revenue authorities, which are concerned about excessive interest ...
For example, if a property has a debt coverage ratio of less than one, the income that property generates is not enough to cover the mortgage payments and the property's operating expenses. A property with a debt coverage ratio of .8 only generates enough income to pay for 80 percent of the yearly debt payments.
In mechanical engineering, backlash, sometimes called lash, play, or slop, is a clearance or lost motion in a mechanism caused by gaps between the parts. It can be defined as "the maximum distance or angle through which any part of a mechanical system may be moved in one direction without applying appreciable force or motion to the next part in mechanical sequence."
Mechanical advantage is a measure of the force amplification achieved by using a tool, mechanical device or machine system. The device trades off input forces against movement to obtain a desired amplification in the output force.
For example, soft rubbers often provide better traction but also wear faster and have higher losses when flexed—thus reducing efficiency. Choices in material selection may have a dramatic effect. For example: tires used for track racing cars may have a life of 200 km, while those used on heavy trucks may have a life approaching 100,000 km.
Ixion engine on a Komet motorised bicycle, ca. 1902. This system is used, for example, to drive the spools in some tape recorders.In a typical configuration, one of the cylinders is the axle of an electric motor, say 1 mm in diameter, while the other is a disk with a hard rubber rim, say 50 mm in diameter, yielding a 1:50 mechanical advantage.