Technicals Stability Returns



Understanding Assets to Shareholders Equity


The assets to shareholders equity ratio is calculated by Total Assets divided by Total Shareholders Equity. This metric measures how much the company's assets are acquired using shareholder's equity instead of debt.

The ideal assets to shareholders equity ratio is 2. A low ratio indicates that the company's more assets are acquired using Equity. And high ratio indicates that more assets are acquired by debt.

The formula for calculating Assets to Shareholders Equity

Interest Coverage


Example: For the financial year Zydus Wellness Limited reported total assets as Rs. 5666.43 Cr. and total shareholders equity as Rs.4567.79 Cr.
The value as per the formula (Total Assets / Shareholders Equity) is calculated as (5666.43 / 4567.79) = 1.24.

Range Indicator of Assets to Shareholders Equity Ratio

Range Indicator Comments Screener at TSR
Below 0.5 Strong Bullish Almost Assets Are Financed By Equity NA
0.5 to 1 Bullish Mostly Assets Are Financed By Equity NA
1 to 2 Mild Bullish Slightly More Assets Are Financed By Equity NA
2 to 3 Neutral Assets Equally Financed By Equity And Debts NA
3 to 4 Mild Bearish Slightly More Assets Are Financed By Debt NA
4 to 5 Bearish Mostly Assets Are Financed by Debt NA
Above 5 Strong Bearish Almost Assets Are Financed By Debt NA