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Ratio analysis

Financial Management

If equity means only ESC & Reserves, then capital employed doesn't include preference share capital sir... please reply sir 🙏🙏🙏🙏🙏

Kavitha Krishnan

CA Inter

★ 665

21-Feb-24 18:09

161

Answers (3)

It includes Preference share capital. Here the term equity means The shareholders equity heading in balance sheet

Naga Koushick Juturu

CA Final

★ 885

21-Feb-24 18:53

Equity = equity share capital+reserves and surplus+preference share capital. Capital employed= equity+long term debts.

Harish Kumar

CA Inter

★ 180

21-Feb-24 19:15

In this picture Equity means ESC+PSC+R&S But In general as per ratio analysis chapter Equity means ESC+R&S Capital Employed means ESC+PSC+R&S and Long term Debt

aditya yanamandra

Faculty

23-Feb-24 11:58

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