Equity Ratio formula
\[ \dfrac{\text{Equity}}{\text{Total assets}} \]
Terms
- Equity, closing balance: Owners’ stake: share capital, reserves and retained earnings, including the current year’s result.
- Total assets, closing balance: Everything the company owns or controls: non-current plus current assets.
Result
Equity Ratio is a ratio. Higher is better.
Target
There is no general target; compare with the company’s own history and with peers in the same industry.
Equity Ratio in Business Central
Equity (closing balance)
- Every income statement account
- Category Equity (14) and every category below it
141 posting accounts in total.
The full account list is on the Equity page.
Total assets (closing balance)
- Category Assets (1) and every category below it
- Plus 1 account assigned directly: 17120 Decreases during the Year
55 posting accounts in total.
The full account list is on the Total assets page.
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