Topics
Series
Concept
Name
Liability structure
en-NZ
Label
Liability structure
en-NZ
Description
Total proprietor or shareholder funds divided by (total proprietor or shareholder funds plus total liabilities).
The liability structure ratio represents equity solely as a proportion of equity plus liabilities. A low ratio indicates a low level of owner’s equity in the business, and a higher risk to debt holders. A high ratio indicates a high level of owner’s equity in the business, and a lower risk to debt holders.
en-NZ