asset/equity ratio


Total assets divided by shareholder equity. Asset/equity ratio is often used as a measure of leverage. For example, if a company's assets are $1 million and its shareholder equity is $1 million, then its asset/equity ratio would be 1.

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The asset/equity ratio was a really interesting thing for me to take a look at and I thought that it was easy to do.

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Robocons asset/equity ratio was nearing one, which did not sit well with the board members, who wanted total and control so they could overthrow the chairman.

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The investment bank seemed to be doing well, but some analysts noticed how high their asset/equity ratio was and didn't think they could handle a crises with that much leverage.

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