Equity Ratio

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

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

Where:

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

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

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