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Glam Journal

Equity ratio - How To Discuss

Author

William Burgess

Updated on June 07, 2026

Equity ratio,

Definition of Equity ratio:

  1. Financial formula which indicates the proportion of owner capital, such as direct owner investments or shareholders, used to fund a companys assets. The equity ratio excludes any debt financing used by a company to raise funds.

    Equity Ratio = Owners Equity / Total Company Assets.

Meaning of Equity ratio & Equity ratio Definition