Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Equity-to-Asset
0.72 (As of Mar. 2017)

Equity to Asset ratio is calculated as shareholders tangible equity divided by its total asset. Adtran Inc's total equity for the quarter that ended in Mar. 2017 was \$482.2 Mil. Adtran Inc's total assets for the quarter that ended in Mar. 2017 was \$667.2 Mil. Therefore, Adtran Inc's Equity to Asset Ratio for the quarter that ended in Mar. 2017 was 0.72.

ADTN' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.63   Max: 0.92
Current: 0.72

0.63
0.92

During the past 13 years, the highest Equity to Asset Ratio of Adtran Inc was 0.92. The lowest was 0.63. And the median was 0.79.

ADTN's Equity-to-Asset is ranked higher than
71% of the 525 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.58 vs. ADTN: 0.72 )

Definition

Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.

Equity to Asset ratio is calculated by dividing shareholders tangible equity divided by its total asset.

Adtran Inc's Equity to Asset Ratio for the fiscal year that ended in Dec. 2016 is calculated as

 Equity to Asset (A: Dec. 2016 ) = Total Equity / Total Assets = 479.517 / 667.235 = 0.72

Adtran Inc's Equity to Asset Ratio for the quarter that ended in Mar. 2017 is calculated as

 Equity to Asset (Q: Mar. 2017 ) = Total Equity / Total Assets = 482.213 / 667.178 = 0.72

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher Return on Equity because of the leverage.

For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.