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

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:

Share post

Share on facebook
Share on twitter
Share on linkedin
Share on xing
Share on whatsapp
Share on email

The last posts

Is the Fresenius share an insider tip?

Is the Fresenius share an insider tip?

Newsletter September 18, 2021: Today we report on the shares of Fresenius and Blue Cap. ...
+ 6.46% dividend yield on the KAP share

+ 6.46% dividend yield on the KAP share

Newsletter September 11, 2021: We report on the Intesa Sanpaolo share. KAP AG ...
What is the P / E ratio (price-earnings ratio)?

What is the P / E ratio (price-earnings ratio)?

Newsletter September 5, 2021: Why is the "price-earnings ratio (P / E)" key figure for the valuation of a share ...

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