What Is the Equity Ratio?
Equity ratio, a ratio that reflects the long-term solvency and capital structure of a company in Western financial accounting. There are mainly debt ratios, equity ratios, and shareholders' equity to total debt ratios.
Equity ratio
Right!
- Chinese name
- Equity ratio
- Foreign name
- Equity ratio
- Location
- Enterprises reflected in Western financial accounting
- Formula
- This ratio reflects whether shareholders are investing too much
- Equity ratio, a ratio that reflects the long-term solvency and capital structure of a company in Western financial accounting. There are mainly debt ratios, equity ratios, and shareholders' equity to total debt ratios.
- Equity ratio
- The debt ratio is also called the debt operating ratio. Is the ratio of total corporate liabilities to total assets. The calculation formula is: Generally speaking, if the ratio is low, the security of creditors is high; otherwise, the security of creditors is low.
Equity ratio The ratio of a company's shareholders 'equity to total assets. The calculation formula is: This ratio reflects whether the shareholders' investment is excessive or insufficient. It shows the extent of corporate debt management from another aspect.
The formula for calculating the ratio of shareholders' equity to total liabilities is: This ratio indicates the proportional relationship between the funds provided by creditors and shareholders, reflects the strength of the basic financial structure of the enterprise, and the degree of protection of shareholders' equity for creditors' input funds.