What is the ROA ratio and how to use it?

The Return on Assets ratio explained. The Return on Assets (ROA) is a “profitability ratio” used to measure how much profit it can generate from its assets. It shows how efficient a company is at earning profits from utilising its economic resources or assets on the balance sheet. The assets ratio is a great way… Continue reading

What is the ROC ratio and how to use it?

The Return on Capital ratio explained. The Return on Capital (ROC) is a “profitability ratio” used to measure the efficiency in which a business allocates its capital to generate profits. Return on capital is one of the best ratio’s that investors can use to determine whether a business will make a viable investment opportunity. The… Continue reading

What is the ROE ratio and how to use it?

The Return on Equity ratio explained. The Return on Equity (ROE) is a “profitability ratio” used to measure the profitability of a business in relation to its equity deployed. The ratio shows how efficient (or deficient) the company is at taking the equity investments of its shareholders and deploying that equity and generating income from… Continue reading