It is also known as equity ratio or net worth to total assets ratio.
This ratio may be further analyzed into the following two ratios: Ratio of fixed assets to shareholders/proprietors funds.
Operating ratio, expense ratio, return on shareholders investment or net worth.Mr Duy, scappy Apps, geregistreerde zedendelinquenten sc scappy Apps, scappy Apps, scappy Apps, scappy Apps.Some authors exclude goodwill zedendelinquenten register 60164 from total assets.Proprietary / Equity ratio indicates the long-term or future solvency position of the business.Example: Share holders funds are 1,800,000 and the total assets, which are equal to total liabilities are 3,000,000.Formula of Proprietary/Equity Ratio: Proprietary or Equity Ratio Shareholders funds / Total Assets.This ratio relates the shareholders funds to total assets.Debtors/Receivables turnover ratio, average collection period, creditors/Payable turnover ratio.A low proprietary ratio will include greater risk to the creditors.Trend Percentage, vertical Analysis, accounting Ratios Definition, Advantages, Classification and Limitations : Gross profit ratio, net profit ratio.You may also be interested in other articles from financial statement analysis chapter: Horizontal and Vertical Analysis, ratios Analysis, horizontal Analysis or Trend Analysis.Working capital turnover ratio, fixed assets turnover ratio Over and under trading Debt-to-equity ratio Proprietary or Equity ratio Ratio of fixed assets to shareholders funds Ratio of current assets to shareholders funds Interest coverage ratio Capital gearing ratio Over and under capitalization Financial-Accounting- Ratios Formulas.This means that out of every 1 employed in the business, shareholders contribution is about 60 cents.Interest Total interest mijn erotische contact expenses, description: Interest coverage ratio measures the ability of a firm to cover is interest obligations.Accordingly, the creditors contribution would be the remaining 40 cents.Total assets include all assets, including Goodwill.It is also regarded as a test of the soundness of the capital structure.Components: Shareholders funds include equity share capital plus all reserves and surpluses items.Significance: This ratio throws light on the general financial strength of the company.
Earning before interest and taxes or ebit ebit as shown by income statement.
Definition: This is a variant of the debt-to-equity ratio.
Basile Van Hoorick, desmos Inc, study Apps, mathAlly.