Switch to:
Watsco Inc (NYSE:WSO)
Equity to Asset Ratio
0.45 (As of Jun. 2014)

Equity to Asset ratio is calculated as shareholder’s tangible equity divided by its total asset. Watsco Inc's total equity for the quarter that ended in Jun. 2014 was $895 Mil. Watsco Inc's total assets for the quarter that ended in Jun. 2014 was $1,991 Mil. Therefore, Watsco Inc's Equity to Asset Ratio for the quarter that ended in Jun. 2014 was 0.45.

WSO' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.8
Current: 0.45

0.32
0.8

During the past 13 years, the highest Equity to Asset Ratio of Watsco Inc was 0.80. The lowest was 0.32. And the median was 0.59.

WSO's Equity to Assetis ranked lower than
51% of the 2582 Companies
in the Global Electronics Distribution industry.

( Industry Median: 0.55 vs. WSO: 0.45 )

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 total shareholders' equity by total assets.

Watsco Inc'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
=840.396/1669.531
=0.50

Watsco Inc's Equity to Asset Ratio for the quarter that ended in Jun. 2014 is calculated as

Equity to Asset (Q: Jun. 2014 )=Total Equity/Total Assets
=894.728/1990.839
=0.45

* 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

Return on Equity, Total Assets, Total Equity


Historical Data

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

Watsco Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
equity2asset 0.660.660.730.740.800.640.620.630.450.50

Watsco Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
equity2asset 0.480.510.450.440.420.460.500.480.450.46
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)
Free 7-day Trial
FEEDBACK