Скачать или смотреть Ratio anaysis | Proprietary ratio | proprietors fund | total assets

Ratio anaysis | Proprietary ratio | proprietors fund | total assets

Welcome to Commerce Shruti! In this video, we will discuss the Proprietary Ratio, a key financial metric under Ratio Analysis.

The Proprietary Ratio measures the proportion of a company's total assets funded by shareholders' equity, reflecting its financial stability and reliance on owned funds versus borrowed funds.

Formula:
Proprietary Ratio = Shareholders’ Funds / Total Assets

Key Points Covered:
Meaning of Proprietary Ratio and its significance in financial analysis.
Interpretation: A higher ratio indicates greater financial stability, while a lower ratio signals higher dependence on borrowed funds.
Practical examples to calculate the Proprietary Ratio and understand its real-world application.
By the end of this video, you will have a clear understanding of the Proprietary Ratio's importance in assessing a company’s solvency and long-term financial health. Perfect for Class 12 commerce students, CA aspirants, and beginners in finance!

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