Overview

fixed-asset to equity-capital ratio


Show Summary Details

Quick Reference

A ratio used to calculate a business’s ability to satisfy long-term debt. The value of the fixed assets is divided by the equity capital; a ratio greater than 1 means that some of the fixed assets are financed by debt.

Subjects: Accounting.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.