Use financial analysis to be better at running your business

TRY IT NOW ▶︎

Bank loans to equity ratio

Method of calculation

Formula for bank loans to equity ratio: (long-term and short-term credits and loans) / equity * 100%

Ratio's description

This ratio complements the information provided by the debt-to-equity ratio – it informs about the debt resulting from the short- and long-term credits and loans.

Ratio's interpretation

  • The interpretation of this ratio is adequate to the interpretation of the debt-to-equity ratio.
  • High ratio's values and their increase over time are interpreted as an increased level of debt resulting from short- and long-term credits and loans, which deteriorates the creditworthiness.
  • Low ratio's values and their decrease over time are interpreted as a decreased level of debt resulting from short- and long-term credits and loans, which improves the creditworthiness.

Get ahead of the others and automate your financial analysis

By introducing financial analysis and permanent financial monitoring of companies into your offer, you go ahead with market demands.

TRY IT FOR FREE ▶︎

PL / EN