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Equity Ratio Calculator - Glossary:
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**Equity Ratio:**It shows the proportion of a company's assets that is financed by equity. It is also called "Equity multiplier".

### Formula:

### How to use this equation?

This is a balance sheet component; the values are commonly stated against Total Equity and Total Assets. To use this ratio, divide the total equity by total assets.**Total Shareholder's Equity (Equity):**

Total equity is the is the value left in the company after subtracting total liabilities from total assets.

**Total Assets:**

Total assets are the sum of all current and noncurrent assets that a company owns.

**Example:**

Equity ratio for a company with a total equity of $150,000 and total assets of $200,000 is 0.75:1. It means that, 75% of its assets are financed by equity and the remaining 25% is financed by debt.