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Cantel Medical Corporation Equity to Asset: 0.6 ( as of Apr13)

* All numbers are in millions except for per share data CMN 10-Y Financials »

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:
Equity to Asset = Total Equity / Total Assets

Formula

Equity to Asset = Total Equity / Total Assets

Cantel Medical Corporation equity2asset Calculation

* All numbers are in millions except for per share data

Cantel Medical Corporation Annual Data

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Cantel Medical Corporation Quarterly Data

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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%.

Financial Dictionary

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