Assets to Shareholder EquityView Financial Glossary Index
Assets to Shareholder Equity is a measurement of financial leverage. It shows the ratio between the total assets of the company to the amount on which equity holders have a claim.
A ratio above 2 means that the company funds more assets by issuing debt than by equity, which could be a more risky investment. A low ratio could be seen as more conservative.
The Assets to Shareholder Equity moves in conjunction with the debt to equity ratio.
Assets to Shareholder Equity = Total Assets / Stockholder Equity