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    Arnroijfnrsktgedy

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    Sandeep Dwivedi
    The document discusses various financial ratios used to analyze a company's solvency and financial health. It defines the debt-to-equity ratio, total assets to debt ratio, proprietary ratio, and coverage ratio. The proprietary ratio establishes the relationship between proprietor's funds and total assets. The coverage ratio measures a company's ability to meet interest payments and indicates its capacity to take on additional debt. Formulas are provided for calculating the proprietary ratio and coverage ratio.

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    Arnroijfnrsktgedy

    Uploaded by

    Sandeep Dwivedi
    6 views2 pages
    The document discusses various financial ratios used to analyze a company's solvency and financial health. It defines the debt-to-equity ratio, total assets to debt ratio, proprietary ratio, and coverage ratio. The proprietary ratio establishes the relationship between proprietor's funds and total assets. The coverage ratio measures a company's ability to meet interest payments and indicates its capacity to take on additional debt. Formulas are provided for calculating the proprietary ratio and coverage ratio.

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    The document discusses various financial ratios used to analyze a company's solvency and financial health. It defines the debt-to-equity ratio, total assets to debt ratio, proprietary ratio, and coverage ratio. The proprietary ratio establishes the relationship between proprietor's funds and total assets. The coverage ratio measures a company's ability to meet interest payments and indicates its capacity to take on additional debt. Formulas are provided for calculating the proprietary ratio and coverage ratio.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    6 views2 pages

    Arnroijfnrsktgedy

    Uploaded by

    Sandeep Dwivedi
    The document discusses various financial ratios used to analyze a company's solvency and financial health. It defines the debt-to-equity ratio, total assets to debt ratio, proprietary ratio, and coverage ratio. The proprietary ratio establishes the relationship between proprietor's funds and total assets. The coverage ratio measures a company's ability to meet interest payments and indicates its capacity to take on additional debt. Formulas are provided for calculating the proprietary ratio and coverage ratio.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    ACCOUNTANCY PROJECT

    SOLVENCY RATIO
    Debt to equity Ratio
    A debt-to-equity ratio is calculated by taking the total liabilities and dividing it by the shareholders' equity: Debt-to-equity ratio = Liabilities / Equity

    Total Assets to Debt Ratio


    A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. Calculated by adding shortterm and long-term debt and then dividing by the company's total assets.

    PROPRIETARY RATIO
    Proprietary ratio (also known as Equity Ratio or Net worth to total assets or shareholder equity to total equity). Establishes relationship between proprietor's funds to total resources of the unit. Where proprietor's funds refer to Equity share capital and Reserves, surpluses and Tot resources refer to total assets.

    COVERAGE RATIO
    This ratio is a measure of your Company's ability to meet interest payments. A high ratio may indicate that a borrower would have little difficulty in meeting the interest obligations of a loan. This ratio also serves as an indicator of your Company's capacity to take on additional debt.

    Proprietary ratio = Proprietor's funds / Total assets

    Net Profit + Depreciation, Depletion, Amortization/Current Maturities Long-Term Debt

    Submitted To:Submitted By;Dr. Vijay Tripathi Bhadouria C

    Anjali Class :- 11th

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