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What Is the Equity-to-Asset Ratio?

By Kristi WaterworthUpdated Dec 17, 2024 at 1:52 PM

Key Points

  • Equity-to-asset ratio measures a company's leverage; examining it aids in understanding debt levels.
  • Calculating this ratio involves dividing total equity by total assets to get a percentage.
  • Compare ratios with industry peers to gauge a company's financial health relative to others.

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