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Answer Posted / kiran
i think debt equity ratio and return on equity ratio is most
important because the 1st ratio shows the way the company
finances its working i.e. thru loan(debt) or its equity
basis(owned funds)The lower this ratio the better is the
company which means that the company is less dependent on
the borrowed funds.
roe shows relation of pat and net worth of the company which
is very important for any investors who wants to invest in
the company
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