The ________ ratio is an indicator of the longer term viability and stability of a company.

Question

Quizplus · Accepted Answer

The shareholders' interest (also known as the equity ratio or shareholder equity ratio) measures the proportion of a company's assets that are financed by the equity of the shareholders. It is a key indicator of the company's long-term viability and stability, as it shows how much of the company's assets are owned by the shareholders and how much is financed by debt. A higher shareholders' interest ratio indicates a stronger financial position, as the company has more assets that are owned by its shareholders, who have a stake in its long-term success.

The ________ Ratio Is an Indicator of the Longer Term