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Asset/Equity Ratio

    0.03 sec.
Asset/equity ratio

Asset/Equity Ratio
The total assets of a company divided by the value of its stockholder equity. This is one measure of a company's leverage.


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Why the distinction is important Whether an instrument like mandatorily redeemable preferred stock is classified as a liability or as equity obviously affects reported amounts of liabilities and equity and related summary indicators, such as the debt/equity ratio and the asset/equity ratio.
 
 
 
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