Five Factors of ROE (Return On Equity) decomposition

This Five Factors of ROE decomposition is given bellow:

Normally ROE= NI/Equity but in five factors decomposition addition 4 items in total 6 items needed. those are:

NI=Net Income

EBT= Earning Before Tax

EBIT=Earning Before Interest & Tax

Sales= Total sales Amount

TA=Total Assets, &

Equity= or Total Equity.

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