Well, that means the ratio of the assets to the equity is 2 1.

I'm worth 11,000.

For example, government treasuries is a liquid security or a liquid asset,

So 5 million of liabilities.

You'll hear people talking in terms of 10 1 or 2 1, or something to one, but 10 3 is a fair leverage ratio.

So once again, I'm stuck holding this non liquid asset.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

Liquid means it's very easy to buy and sell those securities in large quantities.

And you might not even be able to find anyone to buy it a year later.

If you have a 10 year loan, you'd put 10 here.

Mmhm. It's a real estate investment.

Proportion

Proportional Bias

Ratio

Just think of the benefits when it comes to jobs, productivity, employment, child nutrition, maternal mortality, literacy and much, much more.

And then you can imagine now Bank C is worried because now

But just think of it this way, leverage is the ratio of how much assets you have over how much equity you have.

You might be curious about hey, what's all this current asset business?

It's listed as a current asset on this balance sheet but the invoice was never presented to accounts receivable, so....

Illiquidity is a different situation.

So a lot of times people when they talk about leverage, you might hear someone say, 2 1 leverage.

So its assets.

So this is kind of a frozen asset.

That assets, A for assets, is equal to

Golden ratio

Malibu Equity and Investments.

Keep ratio

Keep Ratio

We have a minus fifteen apples.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

Even though it might be worth 20 million, a year later you might not there are only so many people who can afford a 20 million house.

I actually haven't used white.

I'll do apples in this reddish color.

There are four boys, four boys and seven girls. That's what this ratio tells us.

levels of debt, will probably lose some money.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

That's its asset it has.

She miscarried.

I owe these people that money is 700 and my equity is 300.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.

Image to text ratio