Required: Return on Equity (ROE) is used, and some say “abused” when measuring the financial performance of...

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Finance

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Return on Equity (ROE) is used, and some say “abused” whenmeasuring the financial performance of a firm. What are yourthoughts on ROE specifically, as well as other financial ratiosgenerally, when forming an opinion on the financial performance ofa firm? Write at least 300 words.

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Return on Equity ROE is a measure of financial performance calculated by dividing net income by shareholders equity Since shareholders equity is a companys assets minus its debt ROE is a return on net assets The primary purpose of    See Answer
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