fbpx

Equity ratio - key figures simply explained

The equity ratio describes the share of equity in the total capital (equity + debt) of a company.
Reading time: <1 minute

Loading

TransparentShare - equity ratio

Definition: equity ratio

The equity ratio describes the share of equity in the total capital (equity + debt) of a company.



Significance for the evaluation

The equity ratio is an indicator of a company's creditworthiness. A high equity ratio reduces the risk of insolvency and, conversely, means lower debt.

Calculation

Equity ratio = (equity / total capital) * 100

Rating

+1 point: equity ratio> 25%
0 points: Equity ratio between 15% and 25%
-1 point: equity ratio <15%

Other interesting articles:

Loading

Share post

The last posts

Top stocks in focus: The 5 most successful stocks in April 2024

Top stocks in focus: The 5 most successful stocks in April 2024

These 5 top stocks are the high performers in April 2024: SAF-Holland, AlzChem Group, Banco Bilbao…
5 top companies with impressive dividend yields in May 2024

5 top companies with impressive dividend yields in May 2024

Discover top companies with impressive dividend yields now! Invest wisely in May 2024 and secure attractive...
TranspaShare GmbH successfully reported to BAFIN

TranspaShare GmbH successfully reported to BAFIN

Shortly after the founding of TranspaShare GmbH, our company was awarded the…

Simply find the cheapest depot!

Compare now without obligation and without specifying an email address and find the cheapest depot.

OnVista Bank - The new trading freedom

Test for 14 days

Ready to go in 30 seconds

* Without specifying a credit card

en_US
Free stock analysis
Get 1 month of TransparentShare Premium for free!*