Ratio - Edubook - Profitability ratios
3 important questions on Ratio - Edubook - Profitability ratios
What represents the profitability ratio?
Which three things does a compnay wants to know? (profitability ratios)
- What is the return of the capital I used to finance my own investments (equity)?
- What are the expenses of the money I borrowed for financing investments (liabilities)?
- What is the profitability of the equity and liabilities together?
Formula of 'ROE (after taxes)'
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