Equity as Percentage of Capital Employed
It shows what portion of the total funds available to the company is provided by its real owners, i.e. the ordinary shareholders. The larger this percentage, the lower the risk of company’s liquidation through failure to off creditors.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.