Equity: the meaning
What the company owes its owners: capital contributed plus the profits kept over the years.
Equity grows when the company makes a profit and does not pay it out. With negative equity, stricter rules apply to the board in Belgium (the alarm bell procedure).
How to read it
A buffer against setbacks. Negative equity means debts exceed everything the company owns.
On Nummo you find this figure in the Figures tab of every company that filed annual accounts, over the years. In the tables, a small card gives this explanation in short.
How to calculate it
item 10/15
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
More: Negative equity and the alarm bell procedure →
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