Liabilities to equity
How much debt there is for each hryvnia of the owners' money.
Total liabilities divided by equity, as a percentage. 200% means two hryvnias of debt for every hryvnia of equity.
It carries the same information as the equity ratio, expressed in a way that makes the scale of the leverage easier to see. Both become meaningless where equity is negative — the denominator flips and so does the result.
What is acceptable depends on the industry: capital-heavy manufacturing and leasing businesses live on high leverage, consultancies do not.
Where this figure comes from
Calculated by Overit: liabilities (rows 1595 + 1695) divided by equity (row 1495).
Related terms