InvestorWords.com
asset/equity ratio
Definition
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.
Recommended Articles from InvestorGuide.com
Related Videos
Featured Advertiser
Get our free Term of the Day newsletter!



