Which of the following equations is used to calculate return on equity?
A)Return on equity = net income/sales
B)Return on equity = revenue - expenses
C)Return on equity = net income/owners' equity
D)Return on equity = assets + liabilities
E)Return on equity = net income/total assets

Question

Quizplus · Accepted Answer

Return on equity (ROE) is calculated by dividing net income by owners' equity. This ratio measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

Which of the Following Equations Is Used to Calculate Return