Available under Creative Commons-ShareAlike 4.0 International License.
- assets = liabilities + equity . Equity / assets = ( assets - liability) / assets = 1 - liability / assets.
- equity / assets = equity ratio.
- liability / assets = debt ratio. < 0.6 ok.
- from above, equity ratio = 1 - liability ratio
- 1/ equity ratio = assets / equity = capitalisation ratio. < 2.5 ok. ( 1/2.5 = 2/5 = 0.4 = acceptable equity ratio threshold).
- 1718 reads
