Switch to:
Sycamore Networks Inc (OTCPK:SCMR)
Equity to Asset Ratio
0.81 (As of Jan. 2013)

Equity to Asset ratio is calculated as shareholders tangible equity divided by its total asset. Sycamore Networks Inc's total equity for the quarter that ended in Jan. 2013 was \$70.56 Mil. Sycamore Networks Inc's total assets for the quarter that ended in Jan. 2013 was \$87.09 Mil. Therefore, Sycamore Networks Inc's Equity to Asset Ratio for the quarter that ended in Jan. 2013 was 0.81.

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.

Sycamore Networks Inc's Equity to Asset Ratio for the fiscal year that ended in Jul. 2012 is calculated as

 Equity to Asset (A: Jul. 2012 ) = Total Equity / Total Assets = 442.231 / 461.934 = 0.96

Sycamore Networks Inc's Equity to Asset Ratio for the quarter that ended in Jan. 2013 is calculated as

 Equity to Asset (Q: Jan. 2013 ) = Total Equity / Total Assets = 70.555 / 87.093 = 0.81

* 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.

Sycamore Networks Inc Annual Data

 Jul03 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 equity2asset 0.96 0.96 0.96 0.96 0.94 0.97 0.97 0.96 0.96 0.96

Sycamore Networks Inc Quarterly Data

 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 equity2asset 0.97 0.95 0.96 0.96 0.96 0.95 0.96 0.96 0.89 0.81
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)