Common equity to total assets ratio is a measure of a company’s financial health and long-term profitability. It shows how much of a company’s assets are funded by its common shareholders’ equity. It is calculated by dividing the common equity by the total assets. It is reported as a percentage. The formula for common equity to total assets ratio is:
Common equity to total assets ratio = (Common equity / Total assets) * 100
Where:
- Common equity is R0132,
tot_common_eqy
- Total assets is BS036,
bs_tot_asset