{"id":3266,"date":"2025-05-12T09:21:58","date_gmt":"2025-05-12T07:21:58","guid":{"rendered":"https:\/\/pro-visions.anvetogroup.com\/equity-to-debt-capital-adequacy\/"},"modified":"2025-07-15T14:34:03","modified_gmt":"2025-07-15T12:34:03","slug":"equity-to-debt-capital-adequacy","status":"publish","type":"page","link":"https:\/\/pro-visions.eu\/en\/equity-to-debt-capital-adequacy\/","title":{"rendered":"Equity to Debt (Capital Adequacy)"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"https:\/\/e.pcloud.link\/publink\/show?code=XZEBclZpcgsIevaLs0gAByEOziMqSKm9j5y\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"360\" height=\"360\" src=\"https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview.png\" alt=\"\" class=\"wp-image-2359\" style=\"width:150px\" srcset=\"https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview.png 360w, https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview-300x300.png 300w, https:\/\/pro-visions.eu\/wp-content\/uploads\/2025\/05\/png-transparent-pdf-thumbnail-computer-icons-pdf-pdf-miscellaneous-angle-text-thumbnail-removebg-preview-150x150.png 150w\" sizes=\"auto, (max-width: 360px) 100vw, 360px\" \/><\/a><\/figure>\n<\/div>\n<p class=\"wp-block-paragraph\"><strong>Equity to Debt = Equity \/ Total Liabilities<\/strong><\/p>\n\n<ul class=\"wp-block-list\">\n<li>It shows whether the total liabilities of the company exceed its Equity.<\/li>\n\n\n\n<li>When the ratio is &lt; 1\u2026\u2026\u2026 Total liabilities are not covered by equity When the ratio is &gt; 1\u2026\u2026\u2026 The company&#8217;s liabilities are covered by its Equity<\/li>\n\n\n\n<li>Lenders are particularly interested in this ratio as it is an indication of the degree of uncertainty in the return of their capital.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>Business actions to improve the Index<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Reduction<\/strong> of Total Liabilities, by repaying liabilities<\/p>\n\n<ul class=\"wp-block-list\">\n<li>reducing cash,<\/li>\n\n\n\n<li>Liquidation of Fixed Assets and repayment of Liabilities<\/li>\n\n\n\n<li>Liquidation of Inventories and repayment of Liabilities<\/li>\n\n\n\n<li>Accelerating collections from Receivables and repayment of Liabilities<\/li>\n\n\n\n<li>Future reduction of expenses and purchases.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>Increase<\/strong> in Equity, either through future profitability, or by Increase in Share Capital.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Equity to Debt = Equity \/ Total Liabilities Business actions to improve the Index Reduction of Total Liabilities, by repaying liabilities Increase in Equity, either through future profitability, or by Increase in Share Capital.<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-3266","page","type-page","status-publish"],"_links":{"self":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/comments?post=3266"}],"version-history":[{"count":2,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3266\/revisions"}],"predecessor-version":[{"id":3268,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3266\/revisions\/3268"}],"wp:attachment":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/media?parent=3266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}