Showing posts with label return on Equity. Show all posts
Showing posts with label return on Equity. Show all posts

Thursday, November 24, 2011

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.