Home » Classroom » SS2 Accounting Ratio of Equity To Capital Employed Question

How can the ratio of equity to capital employed... - SS2 Accounting Ratio of Equity To Capital Employed Question

How can the ratio of equity to capital employed help investors and analysts in their decision-making process?

The ratio helps investors and analysts assess a company's financial structure, evaluate its ability to meet financial obligations and understand its risk profile. A higher ratio of equity to capital employed is generally considered favourable, indicating a more stable financial position.

Please share this, thanks:

Add your answer

Notice: Posting irresponsibily can get your account banned!

No responses