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Spartech Corporation (NYSE:SEH)
Equity to Asset Ratio
0.33 (As of Oct. 2012)

Equity to Asset ratio is calculated as shareholders tangible equity divided by its total asset. Spartech Corporation's total equity for the quarter that ended in Oct. 2012 was \$180 Mil. Spartech Corporation's total assets for the quarter that ended in Oct. 2012 was \$545 Mil. Therefore, Spartech Corporation's Equity to Asset Ratio for the quarter that ended in Oct. 2012 was 0.33.

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.

Spartech Corporation's Equity to Asset Ratio for the fiscal year that ended in Oct. 2012 is calculated as

 Equity to Asset (A: Oct. 2012 ) = Total Equity / Total Assets = 179.985 / 544.633 = 0.33

Spartech Corporation's Equity to Asset Ratio for the quarter that ended in Oct. 2012 is calculated as

 Equity to Asset (Q: Oct. 2012 ) = Total Equity / Total Assets = 179.985 / 544.633 = 0.33

* 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.

Spartech Corporation Annual Data

 Oct03 Oct04 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 equity2asset 0.35 0.36 0.38 0.43 0.40 0.30 0.36 0.33 0.32 0.33

Spartech Corporation Quarterly Data

 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 equity2asset 0.39 0.33 0.34 0.34 0.34 0.32 0.32 0.31 0.33 0.33
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