Return on Equity shows how efficiently the management of acompany puts capital to work...

80.2K

Verified Solution

Question

Accounting

Return on Equity shows how efficiently the management of acompany puts capital to work to generate a return. Also, ROE is thebasis for the sustainable growth of the company. This ratio can bebroken down into many different parts. Look closely at ProfitMargin, Asset Turnover, and Leverage. What are these numbers forBest Buy? What do they tell you?

Answer & Explanation Solved by verified expert
3.8 Ratings (353 Votes)
ANSWER ROEPMATOEM ROEReturn on equitynet income measured against the total equity employed common stock retained earnings PMProfit Margin net income expressed as a of revenues what is left over after meeting all costsexpenses including tax    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingReturn on Equity shows how efficiently the management of acompany puts capital to work to...Return on Equity shows how efficiently the management of acompany puts capital to work to generate a return. Also, ROE is thebasis for the sustainable growth of the company. This ratio can bebroken down into many different parts. Look closely at ProfitMargin, Asset Turnover, and Leverage. What are these numbers forBest Buy? What do they tell you?

Other questions asked by students