Which ratio indicates the owner's equity as a percentage of total assets?

The Equity Ratio is the correct answer because it specifically measures the proportion of total assets that are financed by the owner's equity. This ratio is calculated by dividing total owner’s equity by total assets and multiplying by 100 to express it as a percentage.

A high equity ratio indicates that a greater portion of the company's assets are funded by the owner's investment, which typically reflects a lower risk level for creditors. Conversely, a lower equity ratio suggests that a larger proportion of assets are financed through debt, which might increase financial risk.

In contrast, the current ratio measures a company's ability to pay its short-term liabilities with its short-term assets and does not address owner’s equity directly. The debt ratio provides insight into the proportions of a company’s assets that are financed through debt rather than equity. Working capital refers to the difference between current assets and current liabilities, focusing on liquidity rather than equity relative to assets. Therefore, the Equity Ratio is the designated measure for assessing owner's equity as a percentage of total assets.