Dirkjan: Created page with "The ROE (return on equity can be calculated as: $\frac {NI}{S} * \frac{S}{TA} * \frac{TA}{EQ}$ Where: $TA$ = Total Assets (which is debt + equit..."

2020-08-25T08:10:14Z

Created page with "The ROE (return on equity can be calculated as: <math>\frac {NI}{S} * \frac{S}{TA} * \frac{TA}{EQ}</math> Where: <math>TA</math> = Total Assets (which is debt + equit..."

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The [[ROE|ROE]] (return on equity can be calculated as:
<math>\frac {NI}{S} * \frac{S}{TA} * \frac{TA}{EQ}</math>

Where:
<math>TA</math> = Total Assets (which is debt + equity)
<math>EQ</math> = Total Equity
<math>S</math> = Sales
<math>NI</math> = Net Income

The ratio <math>\frac{TA}{EQ}</math> is called the '''''financial leverage'''''

[[Category:mbi]]

Financial Leverage - Revision history

Dirkjan: Created page with "The ROE (return on equity can be calculated as: \frac {NI}{S} * \frac{S}{TA} * \frac{TA}{EQ} Where: TA = Total Assets (which is debt + equit..."

Dirkjan: Created page with "The ROE (return on equity can be calculated as: $\frac {NI}{S} * \frac{S}{TA} * \frac{TA}{EQ}$ Where: $TA$ = Total Assets (which is debt + equit..."