Alternative Energy (LSE:ALR) Equity-to-Asset: 0.44 (As of Jun. 2014) — 45% Below Median

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What is Alternative Energy Equity-to-Asset?

Alternative Energy LSE:ALR Equity-to-Asset is 0.44 as of Jun. 2014, which is 45% below its 10-year median of 0.80. The stock has 4 warning signs investors should review.

Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Alternative Energy's Total Stockholders Equity for the quarter that ended in Jun. 2014 was £4.72 Mil. Alternative Energy's Total Assets for the quarter that ended in Jun. 2014 was £10.73 Mil. Therefore, Alternative Energy's Equity to Asset Ratio for the quarter that ended in Jun. 2014 was 0.44.

The historical rank and industry rank for Alternative Energy's Equity-to-Asset or its related term are showing as below:

LSE:ALR' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.48   Med: 0.8   Max: 0.85
Current: 0.48

During the past 7 years, the highest Equity to Asset Ratio of Alternative Energy was 0.85. The lowest was 0.48. And the median was 0.80.

LSE:ALR's Equity-to-Asset is not ranked
in the Utilities - Independent Power Producers industry.
Industry Median: 0.41 vs LSE:ALR: 0.48

Alternative Energy  (LSE:ALR) Equity-to-Asset 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 ROE % 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%.


Alternative Energy Equity-to-Asset Related Terms


Alternative Energy Equity-to-Asset Historical Data

* Premium members only.

The historical data trend for Alternative Energy's Equity-to-Asset can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Alternative Energy Equity-to-Asset Chart

Alternative Energy Annual Data
Trend Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Dec13
Equity-to-Asset
Get a 7-Day Free Trial 0.95 0.85 0.79 0.81 0.48

Alternative Energy Semi-Annual Data
Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Jun13 Dec13 Jun14
Equity-to-Asset Get a 7-Day Free Trial Premium Member Only 0.74 0.81 0.74 0.48 0.44

Alternative Energy Equity-to-Asset Competitor Comparison

For the Utilities - Independent Power Producers subindustry, Alternative Energy's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alternative Energy Equity-to-Asset vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Alternative Energy's Equity-to-Asset distribution charts can be found below:

* The bar in red indicates where Alternative Energy's Equity-to-Asset falls into.



Alternative Energy Equity-to-Asset Calculation

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 stockholders equity by total asset.

Alternative Energy's Equity to Asset Ratio for the fiscal year that ended in Dec. 2013 is calculated as

Equity to Asset (A: Dec. 2013 )=Total Stockholders Equity/Total Assets
=5.482/11.5
=0.48

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

Equity to Asset (Q: Jun. 2014 )=Total Stockholders Equity/Total Assets
=4.72/10.727
=0.44

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Equity-to-Asset →
What does a Equity-to-Asset of 0.44 mean?
Alternative Energy (LSE:ALR) has a Equity-to-Asset of 0.44 as of Jun. 2014. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Alternative Energy and its competitors. This is 45% below median its historical median of 0.80. Over the past decade, Alternative Energy's Equity-to-Asset has ranged from 0.48 to 0.85.
Is Alternative Energy's Equity-to-Asset too high?
Alternative Energy's current Equity-to-Asset of 0.44 is 45% below median its 10-year median of 0.80. Over the past 10 years, this metric has ranged from a low of 0.48 to a high of 0.85. The Utilities - Independent Power Producers industry median Equity-to-Asset is 0.41. Alternative Energy's value of 0.44 is 7.3% above this industry median.
How does Alternative Energy's Equity-to-Asset compare to competitors?
Alternative Energy's Equity-to-Asset of 0.44 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Equity-to-Asset is 0.41. Alternative Energy's value of 0.44 is 7.3% above this benchmark. Historically, Alternative Energy's own Equity-to-Asset has ranged from 0.48 to 0.85 over the past decade. While the company's 10-year median is 0.80 vs. the industry median of 0.41, Alternative Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Equity-to-Asset for an Utilities - Independent Power Producers company?
The median Equity-to-Asset among Utilities - Independent Power Producers companies is 0.41, based on 454 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alternative Energy's current Equity-to-Asset of 0.44 is 7.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Alternative Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Equity-to-Asset is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alternative Energy's current Equity-to-Asset is 0.44, which is 45% below median its own 10-year median of 0.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alternative Energy stock overvalued right now?
Alternative Energy (LSE:ALR) has a current Equity-to-Asset of 0.44. The current Equity-to-Asset is 0.44, which is 45% below median its 10-year median of 0.80 and 7.3% above the Utilities - Independent Power Producers industry median of 0.41. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Alternative Energy (LSE:ALR), the current Equity-to-Asset is 0.44 as of Jun. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Alternative Energy Business Description

Alternative Energy Ltd provides technology, hardware and equipment for renewable energy and green energy solutions. Its solutions include Renewable Energy, The E-Roof - The PC of Energy, and AEL Energy Saving products such as eLIVE and eLUMEN. It also makes acquisitions to develop energy technologies, business and companies which offer an alternative to conventional fossil fuel and nuclear methods of generating household and industrial energy, as well as providing management services to its subsidiaries.