ROE and ROA are both relating to the Income generating efficiency of a business.
ROE gives the Income Generating Efficiency of business on the utilization of Share holders' Equity. Where as ROA refers to how efficient management is using its assets to generate earning.
Yes they are the same thing. They both pay you monthly sums in return for an interest in your equity, or property. Usually, equity release schemes are engineered for the elderly so that they have a steady income every month.
It is the basic accounting equation because liabilities and owner equity both is required to return back to it's owners by business and business must have the same amount of assets to pay all back at any time that's why assets are equal with liabilities and owners equity.
Equity is the proportion of those assets you own, compared to the debt on those assets. An example would be a house. A house is an asset. The equity is the amount of the mortgage that is paid off plus any appreciation the value of the house. Same with a company. Its the difference between what you own and the debt or liabilities. Assets minus liabilities equals equity. You have equity in assets.
Yes shareholders fund is same as equity and these are different names of same thing.
Book Value and Shareholder Equity are not quite the same thing. To find a company's book value, you need to take the shareholders' equity and exclude all intangible items. This leaves you with the theoretical value of all of the company's tangible assets (those which can be touched, seen, and felt). For this reason, book value is sometimes also called "Net Tangible Assets". http://beginnersinvest.about.com/cs/investinglessons/l/blles3bkvalue.htm
No. A Balance Sheet consists of Assets = Liabilities + Owner's Equity. Owner's Equity is increased by profits and contributed capital and is decreased by losses and capital withdrawals. Example of a very simplified Balance Sheet - Assets 150,000 Liabilities 50,000 Owner's Equity 100,000 Total 150,000
They are one and the same and they are used interchangeably.
This would be called an indexed annuity or an equity indexed annuity both meaning the same thing.
This would be called an indexed annuity or an equity indexed annuity both meaning the same thing.
Well lets try to make this simple.Lets say our widget company made a net profit of $100,000 for the year. lets look at how the same profit might be reported two different ways.Return on assets, would be a calculation based on all assets. Lets say the buildings, machines, inventory, WIP, accounts receivable, cash on hand, leasehold improvements + all the things of value that the company owns title to are worth $1 million. Then it would be $100,000 return on $1million in assets or 10% ROAReturn on Equity: If your investors put up $200,000 equity to start the company and all the rest is cash flow & debt, borrowed money. Then it would be $100,000 return on $200,000 equity or 50% ROENow just for the record that is a gross oversimplification & some business professor or accountant is tearing his/her hair out, but in the simplest terms that is the concept answer. ROI & ROCE are similar concepts with subtle differences.
That is a statement that has no true answer. Fulfillment is subjective for one thing. If you are referring to equity as assets such those in investment accounts - there are "specialists" that search for ways, study the market place, political climate...on and on, to look for investment vehicles with the greatest return potential. So what does that mean? Potential is the same as saying possible. Sometimes the plan works better than other times. Predictions are not always realized. If we could know any of this FOR SURE, we'd all have total equity fulfillment. I guess I'd say that equity fulfillment is in the eye of the beholder.
If total assets decreased by $88,000 during a period of time and owner's equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is d. $153,000 decrease