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LSDefine

Simple English definitions for legal terms

equity ratio

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A quick definition of equity ratio:

Equity ratio: The equity ratio is a way to measure how much of a property or company belongs to the owner or shareholders. It is calculated by dividing the amount of money the owner or shareholders have invested (called equity) by the total value of the property or company. For example, if someone buys a house for $100,000 and puts down $20,000 of their own money, their equity ratio would be 20%. This helps people understand how much ownership they have and how much they owe to others.

A more thorough explanation:

The equity ratio is a financial metric that measures the relationship between a company's shareholder equity and its total equity. It is expressed as a percentage and is used to evaluate a company's financial health and solvency.

A company has $500,000 in shareholder equity and $1,000,000 in total equity. The equity ratio is calculated as follows:

Equity Ratio = Shareholder Equity / Total Equity

Equity Ratio = $500,000 / $1,000,000

Equity Ratio = 0.5 or 50%

This means that 50% of the company's total equity is owned by its shareholders.

A homebuyer wants to purchase a property worth $200,000. They have $40,000 in savings for a down payment. The equity ratio is calculated as follows:

Equity Ratio = Down Payment / Property Value

Equity Ratio = $40,000 / $200,000

Equity Ratio = 0.2 or 20%

This means that the homebuyer's equity in the property is 20% and they will need to finance the remaining 80% through a mortgage.

Overall, the equity ratio is an important financial metric that helps investors and lenders evaluate a company's financial health and solvency. A higher equity ratio indicates that a company has a stronger financial position and is less reliant on debt financing.

equity praeter legem | equity security

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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