Accountancy, asked by gudimetlarishi1305, 19 days ago

What does a low Proprietary Ratio mean?

Answers

Answered by eshita185
0

Answer:

Explanation:

A low ratio indicates that a business may be making use of too much debt or trade payables, rather than equity, to support operations (which may place the company at risk of bankruptcy). Thus, the equity ratio is a general indicator of financial stability

Answered by shrutimehra777
0

Answer:

A business may be making use of too much debt or trade payables, rather than equity, to support operations .Thus, the equity ratio is a general indicator of financial stability.

hope it helps

plz mark me as brainiest

Similar questions