It is the proportion of the owner's

It is the proportion of the owner's equity invested in long-term assets in the long-term assets that can be paid off. Part of the owner's equity is used in current assets, that is, working capital or working capital, and the rest is used in fixed assets and other long-term assets, which is called long-term capital. Among the long-term assets, at least 2 / 3 of them are purchased with long-term capital, so it is more appropriate to keep this ratio at 60% - 70%, preferably not less than 50%. If it is less than, it means that more than half of the long-term assets are purchased with long-term liabilities, and the financial risk is high.