Asked by
Austin Kincaid
on Oct 09, 2024
Verified
The formula for the return on equity is: Return on equity = Net income ÷ Average total stockholders' equity.
Return On Equity
A financial ratio that measures the profitability of a business in the relation to the equity, indicating how effectively shareholder equity is being utilized.
- Achieve proficiency in the calculation and elucidation of financial ratios.
- Recognize the effect of asset management on company profitability and efficiency.
Verified Answer
SM
Learning Objectives
- Achieve proficiency in the calculation and elucidation of financial ratios.
- Recognize the effect of asset management on company profitability and efficiency.
Related questions
The Dividend Payout Ratio Is Equal to the Dividend Per ...
The Formula for the Times Interest Earned Ratio Is: Times ...
The Formula for Total Asset Turnover Is: Total Asset Turnover ...
All Other Things the Same, When a Customer Purchases an ...
The Formula for the Average Sale Period Is: Average Sale ...