ROA Versus ROE

Related BrainMass Solutions

• Ridgefield Enterprises: ROA and ROE

  The company's ROA and ROE will increase b. The company's ROA and ROE will decrease. c. The company's ROA will decrease and ROE will increase d. The company's ROA will increase and ROE will decrease e.

• Compute Google's ROE and ROA

  Compute Google's ROE and ROA

• Compute ROA Dupont Formula Financing Cash Requirements

  ROA = 0.060 x 2.00 = 0.120 ROA = 6.0% x 2.00 = 12.0% ROE = ROA x Leverage Ratio ROE = Profit Margin x Asset Turnover

• Calculating Net Income, Return on Assets, Return on Equity

  Net income $ What is ROA? (Round your answer to 2 decimal places. (e.g., 32.16)) ROA % What is ROE? (Round your answer to 2 decimal places.

• Ratio analysis

  ______ ROE? _______ ROA?

• Accounting for Debt, Equity, ROA and ROE: The Blanz Corp.

  503294 Accounting for Debt, Equity, ROA and ROE: The Blanz Corp. You are given the following selected financial information for The Blanz Corp.

• Net profit margin and debt ratio

  Debt Ratio = Total Debt/Total Assets ROE = ROA X Assets/Equity Assets/Equity = ROE/ROA = 5%/3% = 1.67 Equity/Assets = 1/1.67 = 0.60 Debt/Assets = 1- Equity / Assets = 1-0.6 = 0.4 Debt Ratio = 0.4 The solution explains how to calculate the net profit

• Correct Statement

  ROA = PM X TATO ROE = ROA X EM Since EM is below average, implies that ROA will be above average for ROE to be above average The answer is d.

• Ratio Analysis

  ROE = Net Income/Equity = Net Income/Sales X Sales/Assets X Assets/Equity = Profit Margin X Asset Turnover X Equity Multiplier ROE for 20X3 is 38.72% 5. For Profitability we need to look at Profit Margin, ROA and ROE.