Factors Directory

Quantitative Trading Factors

Fixed assets equity ratio

Capital StructureFundamental factorsQuality Factor

factor.formula

Fixed assets to equity ratio = (Total assets - Total current assets) / Total shareholders' equity

This formula calculates the proportion of a company's total assets that are non-current assets (i.e. total assets minus current assets) to shareholders' equity.

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    The total amount of all assets owned by the enterprise at the end of the most recent reporting period, including current assets and non-current assets. Total assets reflect the overall asset size and resource possession of the enterprise.

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    The total amount of current assets held by the company at the end of the most recent reporting period, including cash, short-term investments, accounts receivable, inventory and other assets that can be converted into cash or consumed within one year. Current assets reflect the company's short-term debt repayment ability and operating turnover ability.

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    The total amount of equity held by the owners (shareholders) of a business in the business at the end of the most recent reporting period, including share capital, capital reserves, surplus reserves, and retained earnings. Shareholders' equity reflects the financial condition of the business and the return on the owners' investment.

factor.explanation

This indicator reflects the proportion of a company's own capital (shareholders' equity) used to support the investment in the company's non-current assets (usually long-term assets). It helps investors assess the efficiency of the company's capital allocation and financial risks. A higher ratio may mean that the company relies on long-term investments and has poor liquidity, while a lower ratio may mean that the company has a more flexible financial structure and is better able to cope with short-term risks. This indicator is usually compared with other companies in the same industry and the company's own historical data.

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