Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Join our Q&A platform to get precise answers from experts in diverse fields and enhance your understanding. 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 you found what you were looking for. Feel free to revisit us for more answers and updated information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.
