nal answer:
The owners' equity ratio measures the proportion of a company's total assets that is owned by the owners or shareholders of the company. It is expressed as a formula by dividing the owners' equity by the total assets and multiplying the result by 100%.
Step-by-step explanation:
The owners' equity ratio is a measure that shows the proportion of a company's total assets that is owned by the owners or shareholders of the company. It is expressed as a formula by dividing the owners' equity by the total assets of the company and multiplying the result by 100 to get a percentage.
The formula for owners' equity ratio is:
Owners' Equity Ratio = (Owners' Equity / Total Assets) x 100%
For example, if a company has $500,000 in owners' equity and $1,000,000 in total assets, then the owners' equity ratio would be 50%.