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Equity Ratio

 Equity ratio, abbreviated as E, measures the value of the asses which are financed using the owner's equity. 

Equity Ratio Formula
\( E \;=\; \dfrac{ E_t }{ A_t }  \) 
Symbol
\( E \) = equity ratio
\( A_t \) = total assets
\( E_t \) = total equity

 

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