The Following Disadvantages

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sadiaseo12912
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The Following Disadvantages

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First, calculate your total capital. This consists of the balance sheet total of equity and debt capital. Total capital = equity + debt Total capital = 2,500 euros + 7,500 euros Total capital = 10,000 euros In the second step, you calculate the equity ratio by inserting the numbers into the formula: Equity ratio = (2,500 euros / 10,000 euros) x 100 = 25% What is a good equity ratio.

Whether your company has a good equity ratio depends on several factors. In addition to the size and the industry in which your company operates, it also depends C Level Contact List on the legal form. Savings banks, banks and other credit institutions demonstrate an average equity ratio if the proportion of their own funds is at least 10 percent is. If your company operates in a very asset-intensive area, you will have to invest a lot of money.

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Here it is an advantage if the equity ratio significantly exceeds the guideline value. It can also be noted that the equity share in a GmbH or an AG is significantly higher than in an OHG or a KG. The benchmark for a good equity ratio is a value of 30 percent.< /span> How can you improve your equity ratio? So that you can rely on a solid financial cushion even in times of economic crisis.
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