Return on equity shows how well the business is investing its money, and if it using its assets efficiently.

Name: Return on equity shows how well the business is investing its money, and if it using its assets efficiently.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

Return on equity (ROE) measures how effectively a company is generating profits from its shareholders' equity, not directly how it's investing its money or using its assets. Asset utilization is more closely related to metrics like return on assets (ROA).

Return on Equity Shows How Well the Business Is Investing