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Unformatted text preview: ROE * * Sales Total Assets Stockholders' Equity = Net Income Total Assets ROE * Total Assets Stockholders' Equity = Net Income ROE Stockholders' Equity ∴ = (3) Ratio Debt 1 ROA ROE-= which is the same as Ratio Debt -1 1 * ROA Same as the Equity Ratio ROA ( 29 Ratio Debt -1 1 * Turnover Asset Total * Margin Profit Net ROE = Operating Asset Financial Efficiency Efficiency Leverage = Assets Total Debt Total-1 1 * Assets Total Sales * Sales Income Net ROE = Assets Total Debt Total-1 1 * Assets Total Income Net ROE Ratio Debt 1 ROA ROE-= ∴...
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This note was uploaded on 08/22/2009 for the course FIN 3310 taught by Professor Potts during the Spring '08 term at Baylor.
- Spring '08