Equity ratio
Equity as a percentage of assets — how much of the company its owners have funded.
Calculated by dividing equity by total assets. 40% means four tenths of the assets are funded by equity and the rest by liabilities.
A higher ratio means a bigger cushion against a bad year: losses eat into equity, and the more of it there is, the longer a company holds out. A very high ratio can in turn mean the company is not using debt where debt would be sensible.
Overit calculates this from the published figures.
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