Capital Ratio Calculator

The Capital Ratio measures the amount of equity and debt funding that has resulted in the company acquiring a certain level of Net Property, Plant, and Equipment.

If Capital Ratio increases over time:

An increasing Capital Ratio is usually a negative sign, showing the company may have a lower proportion of fixed assets when compared to its total equity and debt.

If Capital Ratio decreases over time:

A decreasing Capital Ratio is usually a positive sign, showing the company may have a higher proportion of fixed assets when compared to its total equity and debt.

If Capital Ratio stays the same over time:

An unchanged Capital Ratio may indicate the company''s proportion of fixed assets compared to its total equity and debt have remained the same.