Analysis of Financial Statements - Profitability Ratios
5 important questions on Analysis of Financial Statements - Profitability Ratios
What are profitability ratios?
What does the ROE ratio measure?
How is the return on invested capital (ROIC) ratio calculated?
-------------- = %
debt + equity
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What does the ROIC ratio measure?
How is the basic earning power (BEP) ratio calculated?
----------- = %
total assets
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