Debt-to-equity ratio: what is it exactly?
How many euros of debt and provisions there are per euro of equity.
It is the flip side of solvency.
How to read it
Below 1: more equity than debt. Above 3 the company is heavily funded by others.
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
(total assets − equity) ÷ equity (in belgian annual accounts: (20/58 − 10/15) ÷ 10/15)
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
More: Calculate the debt-to-equity ratio: formula →
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