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Electro Rent Corp (NAS:ELRC)
Equity-to-Asset
0.78 (As of Feb. 2016)

Equity to Asset ratio is calculated as shareholders tangible equity divided by its total asset. Electro Rent Corp's total equity for the quarter that ended in Feb. 2016 was \$225.1 Mil. Electro Rent Corp's total assets for the quarter that ended in Feb. 2016 was \$287.2 Mil. Therefore, Electro Rent Corp's Equity to Asset Ratio for the quarter that ended in Feb. 2016 was 0.78.

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.

Electro Rent Corp's Equity to Asset Ratio for the fiscal year that ended in May. 2015 is calculated as

 Equity to Asset (A: May. 2015 ) = Total Equity / Total Assets = 227.978 / 300.314 = 0.76

Electro Rent Corp's Equity to Asset Ratio for the quarter that ended in Feb. 2016 is calculated as

 Equity to Asset (Q: Feb. 2016 ) = Total Equity / Total Assets = 225.099 / 287.169 = 0.78

* 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.

Electro Rent Corp Annual Data

 May06 May07 May08 May09 May10 May11 May12 May13 May14 May15 equity2asset 0.85 0.86 0.87 0.84 0.83 0.79 0.75 0.72 0.77 0.76

Electro Rent Corp Quarterly Data

 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 equity2asset 0.74 0.77 0.77 0.77 0.77 0.76 0.76 0.78 0.80 0.78
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