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Zale Corp (NYSE:ZLC)
Equity to Asset Ratio
0.15 (As of Jan. 2014)

Equity to Asset ratio is calculated as shareholders tangible equity divided by its total asset. Zale Corp's total equity for the quarter that ended in Jan. 2014 was \$192 Mil. Zale Corp's total assets for the quarter that ended in Jan. 2014 was \$1,281 Mil. Therefore, Zale Corp's Equity to Asset Ratio for the quarter that ended in Jan. 2014 was 0.15.

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.

Zale Corp's Equity to Asset Ratio for the fiscal year that ended in Jul. 2013 is calculated as

 Equity to Asset (A: Jul. 2013 ) = Total Equity / Total Assets = 185.329 / 1187.255 = 0.16

Zale Corp's Equity to Asset Ratio for the quarter that ended in Jan. 2014 is calculated as

 Equity to Asset (Q: Jan. 2014 ) = Total Equity / Total Assets = 192.073 / 1280.704 = 0.15

* 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.

Zale Corp Annual Data

 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 equity2asset 0.54 0.59 0.55 0.56 0.42 0.30 0.27 0.18 0.15 0.16

Zale Corp Quarterly Data

 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 equity2asset 0.13 0.16 0.17 0.15 0.11 0.15 0.16 0.16 0.12 0.15
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