Return on Equity (ROE) Ratio Definition, Formula and Example

Return on Equity Ratio Formula

Return on Equity (ROE) Ratio is a financial ratio which represents the net income which a company is earning as per total value of outstanding shares.¬† Which also can be understood that ROE ratio is a profitability ratio which measures the ability of the firm for generating profits by the investments made by the shareholders … Read more

Asset Coverage Ratio

Asset Coverage Ratio formula

Asset Coverage Ratio is a risk measurement which checks the ability of a company to repay its debt obligations through selling its assets. Asset coverage ratio provides us a sense of how much assets of company is required to cover the companies outstanding debts. Asset Coverage Ratio provides a snapshot of the companies financial position … Read more

Return on Assets Ratio – ROA

Return on Assets Formula

Return on Assets or ROA is used to measure the performance of a company on how they can manage its assets to produce the profits for a period.Return on Assets Ratio also called as Return on Total Assets, is a profitability ratio which measures the net income produced by the total assets for a period … Read more