Go to for QUALITY Investing and Finance tutorials Return on Equity & Assets - Learn Finance & Accounting Video return on equity, roe, equity, market, tutorial, . Go to for QUALITY Investing and Finance tutorials Return on Equity & Assets - Learn Finance & Accounting Video return on ... Go to for QUALITY Investing and Finance tutorials Return on Equity & Assets - Learn Finance & Accounting Video return on equity, roe, equity, market, tutorial, ... Return on Sales, Assets, and Equity - Learn Finance & Accounting Video Return on Sales, Assets, and Equity - Learn Finance & Accounting Video Go to for QUALITY Investing and Finance tutorials Return on Equity & Assets - Learn Finance & Accounting Video return on equity, roe, equity, market, tutorial, money, return, profit, dividend, loss, accounting, stocks, trading, trade, successful, profits, banking, whiteboard, economy, tax, purchase, reverse, credit, currency, spreads, offer, bid, overtrading, shares, qe, asset, claims, payments, bank, inflation, losses, ratios, deals, pro rata basis, shareholder's equity accounting, finance, accountant, accounting equation, financial, learning, accounts, How Does Return on Equity Relate to Return on Sales and Return on Assets? by Cam Merritt, Demand Media As a business owner, you may have a pretty good handle on whether your company is making money and how much it's making. What's harder to determine is whether your company is making as much as it could, or should. By analyzing and comparing ratios, such as return on equity, sales and assets, you can glean vital insights on performance. The Formulas Return on equity, sales and on assets are all calculated from items on your annual financial statements: return on equity, ROE, = net income / average equity; return on sales, ROS, = operating profit / sales revenue; return on assets, ROA = net income / average assets. Net income, sales revenue and operating profit come from your income statement. Equity and assets appear on the balance sheet. To calculate average equity, take the amount from the balance sheet at the beginning of the year, add it to the amount from the year-end balance sheet, and divide the result by two. Do the same with your assets to get an average asset. Return on Equity vs. Return on Sales One of the most basic measures of performance, return on equity, tells you what you're getting for your investment. Equity is the difference between your company's assets and its liabilities, so it

• published: 14 Aug 2015
• views: 1