Optare (LSE:OPE) Equity-to-Asset: -0.32 (As of Sep. 2014)

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Director of Data and Quant Analytics at GuruFocus
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What is Optare Equity-to-Asset?

Optare LSE:OPE Equity-to-Asset is -0.32 as of Sep. 2014. The stock has 3 warning signs investors should review.

Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Optare's Total Stockholders Equity for the quarter that ended in Sep. 2014 was £-11.46 Mil. Optare's Total Assets for the quarter that ended in Sep. 2014 was £36.17 Mil. Therefore, Optare's Equity to Asset Ratio for the quarter that ended in Sep. 2014 was -0.32.

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

LSE:OPE' s Equity-to-Asset Range Over the Past 10 Years
Min: -0.32   Med: -0.28   Max: -0.09
Current: -0.32

During the past 6 years, the highest Equity to Asset Ratio of Optare was -0.09. The lowest was -0.32. And the median was -0.28.

LSE:OPE's Equity-to-Asset is not ranked
in the Vehicles & Parts industry.
Industry Median: 0.49 vs LSE:OPE: -0.32

Optare  (LSE:OPE) 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%.


Optare Equity-to-Asset Related Terms


Optare Equity-to-Asset Historical Data

* Premium members only.

The historical data trend for Optare'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.

Optare Equity-to-Asset Chart

Optare Annual Data
Trend Dec08 Dec09 Dec10 Mar12 Mar13 Mar14
Equity-to-Asset
Get a 7-Day Free Trial 0.14 0.16 0.06 -0.12 -0.22

Optare Semi-Annual Data
Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
Equity-to-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.02 -0.12 -0.18 -0.22 -0.32

Optare Equity-to-Asset Competitor Comparison

For the Auto Manufacturers subindustry, Optare'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.


Optare Equity-to-Asset vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Optare's Equity-to-Asset distribution charts can be found below:

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



Optare 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.

Optare's Equity to Asset Ratio for the fiscal year that ended in Mar. 2014 is calculated as

Equity to Asset (A: Mar. 2014 )=Total Stockholders Equity/Total Assets
=-8.799/40.619
=-0.22

Optare's Equity to Asset Ratio for the quarter that ended in Sep. 2014 is calculated as

Equity to Asset (Q: Sep. 2014 )=Total Stockholders Equity/Total Assets
=-11.462/36.172
=-0.32

* 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 -0.32 mean?
Optare (LSE:OPE) has a Equity-to-Asset of -0.32 as of Sep. 2014. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Optare and its competitors.
Is Optare's Equity-to-Asset too high?
Optare's current Equity-to-Asset is -0.32.
How does Optare's Equity-to-Asset compare to competitors?
Optare's Equity-to-Asset of -0.32 can be compared against companies in the Vehicles & Parts industry. The industry median Equity-to-Asset is 0.49. 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 a Vehicles & Parts company?
The median Equity-to-Asset among Vehicles & Parts companies is 0.49, based on 1,335 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. 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 Optare and its competitors. For the Vehicles & Parts industry, the median Equity-to-Asset is 0.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optare's current Equity-to-Asset is -0.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optare stock overvalued right now?
Optare (LSE:OPE) has a current Equity-to-Asset of -0.32. The current Equity-to-Asset is -0.32. 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 Optare (LSE:OPE), the current Equity-to-Asset is -0.32 as of Sep. 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.

Optare Business Description

Optare PLC is a company incorporated and domiciled in United Kingdom on January 23, 2008. The Company is engaged in designing, manufacturing and selling deck and double deck buses, and also offers after sales service. The company operates in the United Kingdom. The Company's products include; Solo a mini-bus, Metro city and Versa a Midi-buses, Tempo a Full size single deck bus, and Metrodecker a Double-decker bus. It also provides refurbishment services; and technical training, support services, and parts.