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Financial Glossary
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> "Free asset ratio" Definition |
 Free asset ratio
The amount by which a company"s assets outweigh its liabilities, expressed as a percentage. Example: A company has assets of £100,000 and liabilities of £80,000. To calculate its free asset ratio:Deduct the liabilities from the assets: £100,000 - £80,000 = £20,000Multiple the result by a hundred: 20,000 x 100 = 2,000,000Divide the result by the assets: 2000,000 / 100,000 = 20Free asset ratio in this case is therefore 20%
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Free asset ratio - The amount by which a company"s assets outweigh its liabilities, expressed as a percentage. Example: A company has assets of £100,000 and liabilities of £80,000. To calculate its free asset ratio:Deduct the liabilities from the assets: £100,000 - £80,000 = £20,000Multiple the result by a hundred: 20,000 x 100 = 2,000,000Divide the result by the assets: 2000,000 / 100,000 = 20Free asset ratio in this case is therefore 20%
Free asset ratio : the amount by which a company"s assets outweigh its liabilities, expressed as a percentage. example: a company has assets of £100,000 and liabilities of £80,000. to calculate its free asset ratio:deduct the liabilities from the assets: £100,000 - £80,000 = £20,000multiple the result by a hundred: 20,000 x 100 = 2,000,000divide the result by the assets: 2000,000 / 100,000 = 20free asset ratio in this case is therefore 20%
