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What does proprietary ratio indicate? - Accounts

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What does proprietary ratio indicate?

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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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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 14: Ratio Analysis - SHORT ANSWER QUESTIONS [पृष्ठ १४.१०९]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 14 Ratio Analysis
SHORT ANSWER QUESTIONS | Q 44. | पृष्ठ १४.१०९
डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 15 Project Work
PROJECT WORK PROBLEMS | Q 24. | पृष्ठ P-63
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