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  Stock Market Basics 67: Equity Ratio Explained — How to Measure a Company’s Financial Strength 3-Line Summary The equity ratio shows how much of a company’s total assets are funded by shareholders’ equity. A higher equity ratio usually means the company relies less on debt and has a stronger financial cushion. However, investors should also check profitability, cash flow, debt structure, and industry characteristics before making any judgment. Recommended Keywords equity ratio, equity ratio explained, equity ratio formula, shareholders’ equity, total assets, debt ratio, financial statement analysis, balance sheet analysis, company financial health, investing basics, stock market for beginners, debt analysis, financial stability Table of Contents What Is the Equity Ratio? Equity Ratio Formula Why the Equity Ratio Matters Equity Ratio and Debt Ratio What a High Equity Ratio Means What a Low Equity Ratio Means What Is a Good Equity Ratio? When a High Equity Ratio Can Be Misleading ...

  Stock Market Basics 66: Debt Dependency Ratio Explained — How Much Does a Company Rely on Borrowed Money? 3-Line Summary The debt dependency ratio shows how much of a company’s total assets are funded by interest-bearing debt. Unlike the debt-to-equity ratio, it focuses more directly on borrowings that can create interest expenses and refinancing risk. Investors should read this ratio together with net debt, interest coverage, operating cash flow, and industry characteristics. Recommended Keywords debt dependency ratio, debt dependency ratio explained, debt ratio, borrowings to total assets, total borrowings, total assets, company debt analysis, financial statement analysis, balance sheet analysis, investing basics, stock market for beginners, interest coverage ratio, operating cash flow, financial health Table of Contents What Is the Debt Dependency Ratio? Debt Dependency Ratio Formula Why the Debt Dependency Ratio Matters Debt Dependency Ratio vs Debt-to-Equity Ratio Debt Depe...