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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