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Both return on asset and return on equity measure profitability which one is more useful for comparing two companies why?
Wiki User
∙ 14y ago
Return on asset= profit margin × asset turnover
Return on equity= return on asset × equity multiplier
so, return on equity is more comprehensive
Wiki User
∙ 14y ago
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return on equity?
this ratio shows how much income is generated by equity of the company. it is a great contributor towards profitability of a company. return on equity is calculated as follows:Return on equity = (Net income / Total equity) x 100
types of profitability ratios?
there are many profitability ratios which are calculated. some of them are:profit marginoperating margintotal asset turnoverreturn on assets (ROA)return on equity (ROE)
What does wacc measure?
WACC is a component used in finance to measure the company's cost of capital, usually as a discounting factor and the companies use debt or equity for financing.
What is an Equity Market?
Equity market is where shares of companies are traded.
What companies offer home equity loans to consumers?
There are a number of companies that offer home equity loans to consumers. Some of those companies include Capital Direct, the Your Equity website, and Chase banks.
Which types of financial companies employ equity research analysts?
The types of financial companies that employ equity research analysts usually deal with stocks and equities. Equity research analysts are usually hired by financial companies or organizations that have equity research opportunities or departments.
What is profit attributable to equity holders of parent company on an income statement?
Profit attributable to equity holders of the parent company on an income statement refers to the portion of profit that belongs to the shareholders of the parent company. It represents the net income after deducting taxes, expenses, and other deductions and attributing it to the shareholders who own equity in the company. It is a measure of the company's profitability available to its shareholders.
Tell us three ratios used to judge a company?
Return on equity, Net Profitability ratio, Acid Test
What are some companies that provide fixed rate equity loans?
The companies that provide fixed rate equity loans are banking industry companies. These may include, but not be limited to, Chase, Bank of America, and TD Ameritrade.
solvency analysis?
this is an analysis of leverage of a company. it also shows if a company is financed by debt or by equity. debt financed companies are riskier compared to equity financed companies. some ratios calculated here are:a) Debt equity ratioDebt equity ratio = Total debt / Total equityb) Debt ratioDebt ratio = Total debt / Total assets
What companies sell a fixed home equity loan?
A fixed home equity loan is a type of loan where the borrow uses the equity in their home as collateral. Various companies sell this type of loan like Bank of America and Citizens Bank.
What home equity companies are located in California?
Companies that offer home equity in California include US Bank, Chase, Alliance MTG, and Ditech. Aside from these, many banks offer home equity, and there are tons of online options as well.
