What is equity cushion in finance?
Can you please explain what exactly is meant by the term "equity cushion" in the realm of finance? I'm curious to understand how it relates to a company's financial health and stability, and how it differs from other forms of financial buffers or reserves. Is it a measure of a company's ability to withstand potential losses or setbacks? Additionally, how is it calculated and what factors contribute to its size? I'm looking forward to gaining a deeper understanding of this concept.