write Short notes on the following:
(a) stock turnover ratio; (b) proprietary ratio
Answers
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
plz mark me Brainlist
Answer:
A.
The stock turnover ratio determines how soon an enterprise sells its goods and products and replace its inventories in a set duration. The stock turnover ratio formula is the cost of goods sold divided by average inventory.
B.
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.16-May-2017