what is Ideal proprietary ratio?
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personal finance on the contrary explain it as a ratio which is used by bank loan
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The proprietary ratio (also known as the equity ratio) is the proportion of shareholders' equity to total assets, and as such provides a rough estimate of the amount of capitalization currently used to support a business. ... Thus, the equity ratio is a general indicator of financial stability.
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The proprietary ratio (also known as the equity ratio) is the proportion of shareholders' equity to total assets, and as such provides a rough estimate of the amount of capitalization currently used to support a business. ... Thus, the equity ratio is a general indicator of financial stability.
Please mark as brainlist
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