das
Eigenkapital
💰 What exactly is das Eigenkapital?
Das Eigenkapital translates to owner's equity or simply equity. It refers to the financial resources contributed to a company by its owners or shareholders, or profits retained within the company. It represents the portion of capital that is available to the company indefinitely and does not need to be repaid (unlike das Fremdkapital - debt capital).
It's a central figure in a company's balance sheet (die Bilanz) and serves as liability capital for creditors (die Gläubiger). A high equity ratio (die Eigenkapitalquote) is often seen as a sign of financial stability.
🚨 Important: The word is almost exclusively used in the singular because it's a collective term for capital. The plural (die Eigenkapitalien) is rare and typically refers to different types or sources of equity in specific contexts.
Article rules for der, die, and das
-al → mostly neutral.
Exceptions: -aal nouns are always masculine.
📊 Grammar Focus: Das Eigenkapital
The noun „Eigenkapital“ is neuter and takes the article das. It is normally used only in the singular.
Declension (Singular)
| Case | Article | Noun |
|---|---|---|
| Nominative | das | Eigenkapital |
| Genitive | des | Eigenkapitals / Eigenkapitales |
| Dative | dem | Eigenkapital |
| Accusative | das | Eigenkapital |
Note: The genitive singular can end in „-s“ or „-es“, with „-s“ being more common.
Example Sentences 📚
- Das Eigenkapital des Unternehmens ist im letzten Jahr gestiegen. (The company's equity increased last year.)
- Zur Gründung einer GmbH ist ein bestimmtes Mindest-Eigenkapital erforderlich. (A certain minimum equity is required to found a GmbH (LLC).)
- Die Bank prüft die Höhe des Eigenkapitals, bevor sie einen Kredit vergibt. (The bank checks the amount of equity before granting a loan.)
- Wir müssen unser Eigenkapital stärken. (We need to strengthen our equity.)
🏦 Usage in Business and Finance
Das Eigenkapital is a fundamental term in Business Administration (Betriebswirtschaftslehre - BWL), accounting (Rechnungswesen), and finance (Finanzwesen).
- Unternehmensgründung (Company formation): Necessary to finance initial setup and as security.
- Bilanzanalyse (Balance sheet analysis): Important key figure for assessing financial stability and independence (die Eigenkapitalquote - equity ratio).
- Kreditvergabe (Lending): Banks evaluate equity as a risk buffer.
- Investorensuche (Investor search): Potential investors pay close attention to the equity structure.
In everyday language outside the financial world, the term is used less frequently. Sometimes it might be used metaphorically for personal reserves, but this is uncommon.
Distinction: Not to be confused with Fremdkapital (debt capital, liabilities) or Gesamtkapital (total capital = equity + debt).
🧠 Mnemonics and Memory Aids
Article Mnemonic (das): Remember das Kapital (capital). Since Eigenkapital is a type of capital, it keeps the article das. Or think: "It's das cash that's mine!" (Cash doesn't fit perfectly, but 'das' links to the concept).
Meaning Mnemonic: The word contains eigen, meaning 'own'. So, Eigenkapital is the capital the company 'owns' itself, not borrowed capital. It's the own-capital.
🔄 Synonyms & Antonyms for Eigenkapital
Synonyms (Similar meaning):
- Reinvermögen: (Net assets/worth) Especially in private contexts or for associations; assets minus liabilities.
- Eigene Mittel: (Own funds) Describes the concept but is less precise.
- Haftungskapital: (Liability capital) Emphasizes its function as security for creditors.
- Equity (English term)
Antonyms (Opposites):
- Fremdkapital: (Debt capital / Borrowed capital) Liabilities, loans.
- Schulden: (Debts) General term for borrowed money.
⚠️ Caution: Das Vermögen (assets) is not the same as das Eigenkapital. Assets include everything of value owned, while equity is the difference between assets and liabilities.
😄 A Little Financial Joke
Fragt der Banker den Unternehmer: „Wie hoch ist Ihr Eigenkapital?“
Antwortet der Unternehmer: „Im Moment? Etwa so hoch wie mein Kaffeetassenpegel nach dem dritten Espresso!“ ☕
Translation:
The banker asks the entrepreneur: "How high is your equity?"
The entrepreneur replies: "Right now? About as high as my coffee cup level after the third espresso!" ☕
📜 A Poem About Capital
Das Geld, das dir gehört, ganz klar,
Nicht geliehen, ist wirklich wahr.
Im Geschäft, als starker Grund,
Macht es die Firma erst gesund.
Das Eigenkapital, so heißt es fein,
Sollte stets solide sein.
Translation:
The money that belongs to you, quite clear,
Not borrowed, is truly here.
In business, as a strong foundation,
It makes the company healthy for the nation.
The equity, so it's finely named,
Should always be solidly framed.
❓ A Little Riddle
Ich bin kein Kredit, keine Schuld, kein Leih'n,
Ich gehöre dem Unternehmen, bin ureigen sein.
In der Bilanz steh' ich auf der rechten Seit',
Bring Stabilität und Sicherheit.
Was bin ich?
Lösung: Das Eigenkapital
Translation:
I am no credit, no debt, no loan,
I belong to the company, am truly its own.
On the balance sheet, I stand on the right side's stead,
Bringing stability and safety ahead.
What am I?
Solution: Equity (Das Eigenkapital)
🧩 Word Components and Trivia
Word Composition: The word „Eigenkapital“ is composed of:
- eigen: Adjective meaning 'own', 'belonging to', 'characteristic'.
- Kapital: Noun (das), meaning 'capital', 'funds', 'assets' used for economic purposes.
Together, the meaning is literally 'own capital', as opposed to borrowed (fremd) capital.
Trivia: The amount of required equity (das Mindesteigenkapital) is often regulated by law, for example, when establishing certain types of companies (like a GmbH or AG in Germany).
📝 Summary: is it der, die or das Eigenkapital?
The correct article for Eigenkapital is das. It is a neuter noun referring to a company's own, non-borrowed capital (equity), derived from das Kapital. It is almost always used in the singular.
