what is the shareholder equity ratio 
the shareholder equity ratio indicates how much of a company s assets have been generated by issuing equity shares rather than by taking on debt the lower the ratio result the more debt a company has used to pay for its assets it also shows how much shareholders might receive in the event that the company is forced into liquidation the shareholder equity ratio is expressed as a percentage and calculated by dividing total shareholders equity by the total assets of the company the result represents the amount of the assets on which shareholders have a residual claim the figures used to calculate the ratio are recorded on the company balance sheet investopedia nez riazthe formula for the shareholder equity ratio is shareholder equity ratio total shareholder equity total assets text shareholder equity ratio dfrac text total shareholder equity text total assets shareholder equity ratio total assetstotal shareholder equity total shareholders equity comes from the balance sheet following the accounting equation se a l where s e shareholders equity a assets l liabilities begin aligned text se text a text l textbf where se text shareholders equity a text assets l text liabilities end aligned se a lwhere se shareholders equitya assetsl liabilities 