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Post by sadiaseo12922 on Dec 20, 2023 2:34:15 GMT -7
Than the Interest on the on Equity. You Can Determine the Return on Assets Using the Following Formula: Formula for Calculating Return on Assets Interpretation of Return on Equity When Determining Return on Equity, Aim for a High Value. However, This Only Provides You With Well-founded Information if You Correctly Interpret the Result and Analyze the Basis on Which a High Value Was Obtained. For Example, if You Notice That You Have a Low Equity Ratio , a High Return on Equity Suggests That You Are Using More Debt Than Equity. If You Exclude the Amount of C Level Contact List Interest on Borrowed Capital From the Analysis, You Are Neglecting the Costs That Lead to Economic Difficulties for Your Company. If, on the Other Hand, You Determine a High Equity Ratio , a Return on Equity of More Than 10% Can Be Interpreted as the Economically Optimal Result. What Does a Negative Return on Equity Mean? If You Achieve a Lower Profit, the Result Also Affects the Calculation of the Return on Equity. If You Show a Higher Value as Balance Sheet Equity, This Results in a Negative Return on Equity . Another Reason for a Negative Return on Equity is That You Determine a High Equity Ratio. This Indicates Stable Liquidity . Therefore, in Addition to the Return on Equity, It is Also Important to Determine Other Key Figures in Order to Underline the Significance.
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