Terms Beginning With 's'

Shareholder Equity Ratio

  • January 07, 2020
  • Team Kalkine

Shareholder Equity Ratio shows the ratio of debt and equity used to fund the assets of the company. If the ratio is one, then its fully financed by the equity and lower than 0.5 means that the assets are more funded by the debts. The formulae for the calculation are a division of Total Shareholder Equity by Total Assets of the company.

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