CompanyGraph
Use to find companies where this pattern is active.
Shareholders' equity is a large share of total assets; the Leases line is a large share of total assets and of non-current assets. The latter two share the same numerator (Leases) and tend to fire together.
State
High equity-to-assets co-occurs with elevated lease share of total assets and non-current assets
Emergence
Three balance-sheet ratios line up: shareholders' equity is a large share of total assets, the Leases line is a large share of total assets (scaled against 30%), and the Leases line is a large share of non-current assets (scaled against 50%). The latter two are near-duplicates — same numerator (Leases), different denominator (total assets vs non-current assets) — so they tend to fire together.
Limits
All three readings are balance-sheet snapshots from the most recent annual statement. The Leases line reflects accounting capitalization of lease liabilities; it does not measure the operational mix of owned vs leased equipment, nor the cash-flow burden of lease payments relative to operating cash flow. The equity-to-assets reading is the inverse of total liabilities (including operating and lease liabilities) relative to assets, not a debt-specific measure. Neither high lease share nor high equity share by themselves predicts financial difficulty.
Explanation
Three balance-sheet ratios co-occur: - Equity Ratio (ratio-balance-equity): Total shareholders' equity as a fraction of total assets. High reading means total liabilities are low relative to assets — not debt-specifically. - Leases to Assets: Leases line as a fraction of total assets (mapped 0–30%). - Leases Weight: Leases line as a fraction of total non-current assets (mapped 0–50%). Near-duplicate of leases-to-assets with a different denominator. All three are snapshots from the most recent annual balance sheet. The Leases line is accounting capitalization, not an operational mix measure. The configuration does not by itself predict difficulty.
Interpretation
Co-occurrence of a high equity-to-assets reading with elevated lease share of total and non-current assets. The two lease readings share the same numerator (Leases). The formulas record balance-sheet snapshots; they do not measure operational mix or cash-flow burden.
Required Observations
Leases To Assets
Lease obligations relative to total assets
Leases Weight
Lease obligations relative to non-current assets
Ratio Balance Equity
Specific balance-sheet ratio benchmarked against industry (which ratio depends on the instance)