abhishreshthaa
Abhijeet S
The denominator consists of shareholders funds and borrowed funds.
Significance:
1. It measures the earning capacity of the business
2. It indicated the operating and managerial efficiency
3. Capital investment decisions are influenced by this ratio.
Significance:
1. It measures the earning capacity of the business
2. It indicated the operating and managerial efficiency
3. Capital investment decisions are influenced by this ratio.