Mar 8, 2021 · Return on equity (ROE) is a measurement of how effectively a business uses equity – or the money contributed by its stockholders and cumulative retained profits – to produce income. In other words, ROE indicates a company’s ability to turn equity capital into net profit.

The return on equity ratio is a ratio that shows how much of shareholder equity generates profit. It's considered a profitability ratio, or a measuring stick indicating ability to create profits.

Feb 5, 2024 · Return on Equity (ROE) is a financial ratio created by dividing a company's net income by its equity. It is stated as a percentage and is a two-part measurement.

The company has total assets of $500,000 and total liabilities of $100,000. What is the company's return on equity ratio? A. 50.0% B. 10.0% C. 12.5% D. 16.7%; A company has sales of $7,395, total assets of $3,485, and a debt-equity ratio of 0.26. Assume the return on equity is 17 percent. What is its net income?

A common measure of profitability is the: a. current ratio b. current cash debt coverage ratio c. return on common stockholder's equity ratio d. debt to total assets The ratios that are used to determine a company's short-term debt paying ability are A) asset turnover, times interest earned, current ratio, and accounts receivable turnover.

Using the following information from a balance sheet and an income statement, compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity. (the previous years total assets were $200,000 and s; Earnings per share is a a. profitability ratio. b. liquidity ratio. c. solvency ratio. d.

Y3K Inc. has sales of 5,783 total assets of 2,604 and a debt equity ratio of 75 If its return on equity is 11 percent What is its net income Y3K, Inc. has sales of $6,299, total assets of $2,915, and a debt-equity ratio of 1.20.

If a firm has $100,000 debt and $100,000 equity, then a. The return on equity ratio is 1. b. The debt-to-equity ratio is 1. c. The return on assets ratio is 0.5. d. The firm has too much debt. Which of the following is a solvency ratio? a. Current ratio b. Deb-to-equity ratio c. Earnings per share d. Return on equity ratio

Uncover more about the return on equity ratio including its formula and calculation and view an analysis of it. Related to this Question Y3K, Inc., has sales of $6,219, total assets of $2,835, and a debt equity ratio of 1.50.

Nov 21, 2023 · Return on Assets is a financial statement ratio that measures how well a company uses its assets to generate revenue. This ratio is usually abbreviated as ROA, and it's a measure of profitability.