abhishreshthaa
Abhijeet S
LEVERAGE RATIOS
Leverage ratios or capital structure ratios are ratios which measures the relative interests of the owners and creditors in an enterprise.
Further they measure the stake (risk) of the creditors as against the owners. Again they portray the long-term solvency of the concern. Above all, they help the management in the proper administration of the capital.
They are helpful to the owners in ascertaining their interest and control in the enterprise.
In this type we calculate two ratios. They are as under:-
1. Equity Ratio
2. Fixed Assets Ratio
Leverage ratios or capital structure ratios are ratios which measures the relative interests of the owners and creditors in an enterprise.
Further they measure the stake (risk) of the creditors as against the owners. Again they portray the long-term solvency of the concern. Above all, they help the management in the proper administration of the capital.
They are helpful to the owners in ascertaining their interest and control in the enterprise.
In this type we calculate two ratios. They are as under:-
1. Equity Ratio
2. Fixed Assets Ratio