Which of the return on investment ratios would be of most interest to the owners of a company?
A)Return on assets
B)Return on interest
C)Return on debt
D)Return on equity

Question

Quizplus · Accepted Answer

Return on equity (ROE) is the ratio that measures how much profit a company generates with the money shareholders have invested in the business. Owners are interested in this metric because it calculates the return they receive on their investment. A high ROE means that the company is using shareholder funds effectively to generate profits.

Which of the Return on Investment Ratios Would Be of Most