301 calculating returns
Dev Raga Personal Finance
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The Importance of Return on Assets Ratio
Internal rate of return assumes all profits are reinvested into the same investment. Return on assets is more specific to companies who want to find out how they profit to relate to their assets The higher the return on assets, the better the company is performing. Return on equity is a ratio where you take the net income that is before taxes and after expenses And compare it to the average shareholder equity. It's important when comparing companies you need to keep it within the same industry Otherwise it'll be an unfair comparison.
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