What is EQUITY RATIO?

A calculate value by the following formula: value of owner’s equity divided by the value of all the assets involved. No debt financing is involved in the calculation. Identifies how much has been used to fund a company’s assets.

More On This Topic



Link to This Definition
Did you find this definition of EQUITY RATIO helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary