Equity ratio
Capital and reserves against total assets — the share of the company its owners have funded.
Calculated by dividing capital and reserves by total assets. 40% means four tenths of the assets are funded by the owners and the rest by creditors.
A higher ratio is a thicker cushion against a bad year: losses eat into equity, and the more of it there is, the longer the company holds out. A very high ratio can in turn mean it is not using debt where debt would be sensible.
It is the most available ratio on the site — it can be calculated for nearly every filed period, because both of its terms are in the balance sheet.
Calculated by Overit from the published amounts.
Related terms