Net worth ratio is the ratio that shows the net worth of the investment of an investor made within the company. This ratio depicts the return that the shareholder is going to receive on their investment assuming that all the profit earned by the
Net Worth Ratio
Net worth is a concept applicable to individuals and businesses as a key measure of how much an entity is worth.
Return on Shareholders Investment or Net Worth Ratio: Definition: It is the ratio of net profit to share holder’s investment. It is the relationship between net profit (after interest and tax) and share holder’s/proprietor’s fund. This ratio establishes the profitability from the share holders’