equity
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equity
The part of a company's capital that belongs to the owners. It is the difference between the assets and the debts (borrowed capital).
Für die Gründung der Firma mussten die Gesellschafter ein Eigenkapital von 25.000 Euro aufbringen.
To found the company, the shareholders had to raise equity of 25,000 euros.
The word is made up of 'eigen' (own) and 'Kapital' (capital). So it literally describes a company's 'own capital', in contrast to 'Fremdkapital' (borrowed capital), which is borrowed from others.
Ein hohes Eigenkapital macht ein Unternehmen für Investoren attraktiver.
High equity makes a company more attractive to investors.
In an economic context, 'Eigenkapital' (equity) is often used with certain verbs. Typical phrases are 'Eigenkapital aufbringen' (to raise equity), 'Eigenkapital erhöhen' (to increase equity), or 'das Eigenkapital stärken' (to strengthen equity).
Die Gründer müssen ausreichend Eigenkapital aufbringen, um einen Kredit zu bekommen.
The founders have to raise sufficient equity in order to get a loan.
'Eigenkapital' (equity) is a technical term from business and finance. It rarely occurs in everyday usage, but it is essential for anyone dealing with founding a company or with finances.
In der Bilanz wird das Eigenkapital auf der Passivseite ausgewiesen.
On the balance sheet, equity is shown on the liabilities side.
equity
In finance, Eigenkapital and Equity can refer to the same share of the owners in a company's assets after its debts have been deducted. Eigenkapital is the German term; Equity is the English loanword and is especially appropriate in an internationally oriented financial context.
Im deutschen Geschäftsbericht wird das Eigenkapital des Unternehmens ausgewiesen.
The company's equity is reported in the German annual report.
Im internationalen Finanzbericht wird die Equity des Unternehmens ausgewiesen.
The company's equity is reported in the international financial report.
