At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Return on Equity = Net Income/Shareholders Equity or
Return On Equity = Net Profit Margin × Total Asset Turnover × Equity Multiplier
Return on equity = 0.045 × 1.16 × 1.72 = 0.0898 or 8.98%
The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE). A corporation is better at turning its equity financing into profits the higher the ROE.
ROE is frequently used to evaluate a business against its rivals and the market as a whole. The method is particularly useful for evaluating businesses with a focus on tangible assets rather than intangible assets and for comparing businesses in the same industry since it frequently provides accurate indications of which businesses are operating more profitably.
Learn more abut Return On Equity here
https://brainly.com/question/13335247
#SPJ4
We hope this was helpful. Please come back whenever you need more information or answers to your queries. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.
