Solidity
What is it?
Solidity represents the proportion of equity to the total assets of an organization or company. It indicates the percentage of assets financed by equity rather than debt.
How is it calculated?
(Equity / Total Assets) = Solidity (%)
Why is it important to follow?
Solidity is a crucial financial indicator providing insights into the financial stability and risk level of a company. A high solidity suggests that a significant portion of the company's assets is equity, signaling a strong financial foundation and increased resilience to economic fluctuations.
Created by Homepal
3/13/2024
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