Question

what is ideal proprietary ratio​

Answer 1

Explanation:

This ratio indicates the relationship between the outsiders funds and the shareholders' funds. Proprietary Ratio or Net Worth Ratio Ideal ratio : 0.5:1 Higher the ratio better the long term solvency (financial) position of the company.

Here you go⚡

Answer 2

Answer:

this ratio indicates the relationship between the outsiders funds and the shareholders' funds. Proprietary Ratio or Net Worth Ratio Ideal ratio : 0.5:1 Higher the ratio better the long term solvency (financial) position of the company.

Explanation:

What is the ideal ratio of proprietary ratio?

Accounting Ratios

To test Name of Ratio Industry norm

Liquidity and Solvency iii) Absolute Liquid Ratio 1:1

iv) Proprietary Ratio 60% to 75%

Capitalisation i) Debt Equity Ratio 2:1

ii) Capital Gearing Ratio 2:1