Equity represents the portion of your organization’s financing that comes from the owners or shareholders. It consists of contributed resources, such as capital or retained profits. In essence, equity represents the difference between the assets (possessions) and liabilities (obligations) of your organization. In other words, it is the amount that would remain if all debts were paid off.
A high level of equity provides a buffer against financial setbacks, increasing the stability of your organization. It also gives your organization the flexibility to invest in growth, innovation, and new opportunities without being immediately reliant on external financing.
Banks and investors look at equity to assess the financial health of your organization and to determine whether it is wise to lend or invest. Additionally, strong equity helps your organization continue operating in the long term and achieve its ambitions, even during challenging economic times.
For an ambitious and results-driven organization, equity is essential. It supports the organization’s vision with the necessary financial resources and allows it to take on risks, thus enabling the achievement of strategic goals.
Sustainable success through manageable and controlled growth
The ICR online business software helps entrepreneurs and organizations find balance and peace, through manageable and controlled growth, with the goal of a healthy organization and sustainable success. We do this through the all-encompassing ICR cycle.
Choose our successful approach and start your process to go from ambition to result with the ICR Ambition Refresher!
The comprehensive ICR cycle
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