Self-financing ratio: the meaning
The share of the balance sheet made up of profits kept over the years.
This is also component X2 of Altman's health check.
How to read it
The higher, the more the company grew on its own. A young company naturally sits lower.
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
(reserves + result carried forward) ÷ total assets (in belgian annual accounts: (13 + 14) ÷ 20/58)
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
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