Answer / Manish Kumar Dubey

Proprietary Ratio, also known as the Owners' Equity Ratio or the Leverage Ratio, measures the proportion of a company's total assets that is financed by equity. It indicates the degree of financial leverage in a company. The components are Share Capital and Reserves & Surplus. The formula is: Proprietary Ratio = (Share Capital + Reserves & Surplus) / Total Assets.

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