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KKR Financial Holdings LLC (NYSE:KFN)
Equity to Asset Ratio
0.29 (As of Dec. 2013)

Equity to Asset ratio is calculated as shareholders tangible equity divided by its total asset. KKR Financial Holdings LLC's total equity for the quarter that ended in Dec. 2013 was \$2,527.7 Mil. KKR Financial Holdings LLC's total assets for the quarter that ended in Dec. 2013 was \$8,717.2 Mil. Therefore, KKR Financial Holdings LLC's Equity to Asset Ratio for the quarter that ended in Dec. 2013 was 0.29.

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.

KKR Financial Holdings LLC's Equity to Asset Ratio for the fiscal year that ended in Dec. 2013 is calculated as

 Equity to Asset (A: Dec. 2013 ) = Total Equity / Total Assets = 2527.734 / 8717.198 = 0.29

KKR Financial Holdings LLC's Equity to Asset Ratio for the quarter that ended in Dec. 2013 is calculated as

 Equity to Asset (Q: Dec. 2013 ) = Total Equity / Total Assets = 2527.734 / 8717.198 = 0.29

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

KKR Financial Holdings LLC Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 equity2asset 0.32 0.11 0.10 0.09 0.05 0.11 0.20 0.19 0.22 0.29

KKR Financial Holdings LLC Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 equity2asset 0.19 0.20 0.21 0.22 0.22 0.29 0.29 0.30 0.29 0.28
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