Equity Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Equity ratio, abbreviated as E, a dimensionless number, measures the value of the asses which are financed using the owner's equity.


equity ratio Formula

\(\large{ E = \frac{ E_t }{ A_t }  }\)   


\(\large{ E }\) = equity ratio

\(\large{ A_t }\) = total assets

\(\large{ E_t }\) = total equity


Tags: Equations for Manufacturing