What is egenkapital (equity)?

In short

Egenkapital is the owners' share of the business: assets minus debt. It grows with profits and shrinks with losses and dividends.

In practice

In an ApS the equity starts as the share capital (at least DKK 20,000). If equity turns negative, management must react — so keep an eye on it.

Related terms

• Balance (balance sheet)
• Udbytte (dividends)
• See every term in the dictionary

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