Innovative Engineering Services De Clercq(SPRL)

Section 10/15: Equity consists of capital, capital reserves and earnings that remain within the company. These are fully owned by the company and are at its disposal to cover its risks. The better the ratio between equity and debts, the more solvent a company is. A positive equity ratio is important. A negative equity ratio (because of accumulated losses) is a severe warning sign that the continuity of the company may be threatened.