The _______ ratio measures the proportion of total assets provided by the company's owners.

Question

Quizplus · Accepted Answer

The shareholders' interest or equity ratio measures the proportion of total assets financed by the company's owners, in comparison to the amount funded by creditors. It is calculated by dividing the company's equity or shareholders' funds by its total assets. The higher the ratio, the greater the amount of assets that are financed by the shareholders.

The _______ Ratio Measures the Proportion of Total Assets Provided