Equity ratio

How much of the assets is financed by the owners' own money.

The equity ratio is equity divided by total assets, as a percentage. It shows how much of what the company owns is not borrowed.

A high ratio means the company can absorb a bad year without falling out with its creditors. A low one is not automatically dangerous, but it leaves less room.

If the ratio is negative the equity is gone: liabilities exceed assets, and Norwegian company law requires the board to act.

Overit calculates this from the published figures.

Equity ratio | Overit Norway