Company XYZ’s ratio of 40% indicates that 40% of its assets are financed through liabilities, while the remaining 60% is funded by equity. The Total Liabilities / Total Assets ratio is a vital ...

Can the Equity to Asset Ratio be negative? Yes, if a company has negative shareholders’ equity (for example, if its liabilities exceed its assets), the Equity to Asset Ratio will be negative.

Reviewed by Thomas Brock Fact checked by David Rubin The debt-to-capital ratio is a financial leverage ratio, similar to the ...