Equity Ratio Calculator
Compute your Equity Ratio to understand what percentage of your total assets are financed by shareholders rather than debt. Optimize your capital structure.
Equity Ratio Calculator
Compute your Equity Ratio to understand what percentage of your total assets are financed by shareholders rather than debt. Optimize your capital structure.
How to Use Equity Ratio Calculator in 3 Easy Steps
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Step 1
Find your Total Shareholders' Equity from the bottom of your balance sheet.
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Step 2
Input your Total Assets.
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Step 3
Use advanced toggles to switch between standard and strict Tangible Equity metrics.
Frequently Asked Questions
Not necessarily. While extremely safe, an Equity Ratio of 90% implies the company isn't utilizing cheap debt to leverage growth. Investors might see this as overly conservative, leading to lower aggregate yields.
Preferred stock is technically equity, but functions much like debt due to mandatory fixed dividend payments. Strictly analytical models exclude preferred stock to evaluate "Common Equity" only.
The accounting equation states Assets = Liabilities + Equity. The Equity ratio simply visualizes the "Equity" portion of the right side as a percentage of the entire left side.