Equity Ratio Calculator is a tool that calculates the equity ratio dividing total equity by total assets

- Equity Ratio:
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- What does Equity Ratio mean?
- The Equity Ratio is an investment leverage or solvency ratio that measures the number of assets that are financed by ownersâ€™ investments by comparing the total equity in the company to the total assets.

- Formula
- Equity Ratio = Owners Equity / Total Assets

- Example
- For example, ABC International has total equity of $500,000 and total assets of $750,000. On applying the above formula it results in an equity ratio of 67% and implies that 2/3 of the company's assets were paid for with equity.