Difference between revisions of "ROE"

Revision as of 18:39, 27 August 2020

ROE

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-ROE stands for '''''Return On Equity'''''. The ROE can be calculated as:
+ROE
-<math>\text{ROE} =  \frac {NI}{S} \cdot \frac{S}{TA} \cdot \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
-And:
-* <math>\frac {NI}{S}</math> => Profitability
-* <math>\frac{S}{TA}</math> => Asset turnover
-* <math>\frac{TA}{EQ}</math> => Leverage
 [[Category:finance]]