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प्रश्न
What does proprietary ratio indicate?
लघु उत्तरीय
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उत्तर
The proprietary ratio indicates a company’s financial strength and stability by measuring how much of its total assets are financed by shareholders’ equity (or proprietors’ funds) rather than debt. A corporation with a higher proprietary ratio is more self-financed and has a larger equity base, making it less risky. It shows the company has enough equity to overcome losses.
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