Return on Proprietors funds is also known as which Ratio _____
Return on Proprietors' Funds is also called Return on Shareholder's Funds or Return on Shareholder's Investment.
It shows the relationship between net profits after interest and tax and the proprietors' funds or shareholders' funds.
It is the ratio of net profit to proprietor's funds as shown by the Balance Sheet which is the same as total assets and fewer liabilities.
This ratio is ascertained by comparing net profit with the proprietor's fund which Consists of share capital plus capital and revenue reserves.
Proprietors' funds include equity share capital, preference share capital, all the reserves (capital redemption reserve, capital reserve, securities premium account, general reserve, credit balance of profit and loss appropriation account, etc.) less accumulated losses and miscellaneous expenditure not yet written off (preliminary expenses, underwriting commission, discount on issue of shares or debentures, interest paid out capital, etc.)