Question:medium
From the following information, calculate ‘Proprietary Ratio’ and ‘Debt-to-Equity Ratio’:
Equity Share Capital ₹3,00,000
Preference Share Capital ₹1,00,000
Reserves and Surplus ₹1,00,000
Plant and Machinery ₹3,50,000
Non-current Investments ₹1,00,000
Current Assets ₹2,00,000
Long-term Borrowings ₹1,50,000
From the following information, calculate ‘Proprietary Ratio’ and ‘Debt-to-Equity Ratio’:
Equity Share Capital ₹3,00,000
Preference Share Capital ₹1,00,000
Reserves and Surplus ₹1,00,000
Plant and Machinery ₹3,50,000
Non-current Investments ₹1,00,000
Current Assets ₹2,00,000
Long-term Borrowings ₹1,50,000
Preference Share Capital ₹1,00,000
Reserves and Surplus ₹1,00,000
Plant and Machinery ₹3,50,000
Non-current Investments ₹1,00,000
Current Assets ₹2,00,000
Long-term Borrowings ₹1,50,000
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Formulas:
• Proprietary Ratio = Shareholders’ Funds ÷ Total Assets
• Debt-Equity Ratio = Long-term Debt ÷ Shareholders’ Funds
Include preference capital in shareholders’ funds unless stated otherwise.
Updated On: Feb 26, 2026
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Solution and Explanation
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