Velkaomaisuussuhde

Velkaomaisuussuhde is a financial ratio that measures the proportion of a company's capital structure that is financed through debt. Calculated by dividing total debt by total equity, the ratio indicates how much debt is used to support the company’s operations relative to the owners’ stake. The formula is: Velkaomaisuussuhde = (short‑term debt + long‑term debt) ÷ shareholders’ equity. The ratio can also be expressed as a percentage or as a multiple, providing a clear gauge of leverage.

The primary purpose of the velkaomaisuussuhde is to assess financial risk. A high ratio suggests that a company relies heavily on borrowed funds, potentially increasing vulnerability to interest rate changes and default risk during downturns. Conversely, a low ratio indicates a more conservative capital structure with greater equity cushion. Analysts compare the ratio among firms within the same industry to determine relative solvency and to track changes over time in a single company’s leverage strategy.

Interpretation of the ratio varies with sector. Capital‑intensive industries such as utilities and manufacturing often exhibit higher velkaomaisuussuhde values because of the need for large fixed‑asset investments, while high‑growth technology firms tend to show lower ratios. Regulators and credit rating agencies reference the metric when evaluating creditworthiness. However, the ratio does not account for asset quality or cash‑flow dynamics, so it is commonly used alongside other indicators such as debt‑to‑EBITDA and interest‑coverage ratios.

In Finnish accounting, velkaomaisuussuhde is reported in the balance‑sheet‑based analysis of listed companies, appearing in financial reports submitted to the Finnish Market Authority and used by investors during due‑diligence processes. Its widespread use across European markets has made the term a standard component of both academic and professional finance literature.