ROE and ROA Concepts

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What is the main concept of ROE?

Return on Equity measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested

What does ROA primarily indicate?

ROA indicates how efficiently a company uses its assets to generate profit

Test your knowledge about Return on Equity (ROE) and Return on Assets (ROA) concepts. Learn about the main concept of ROE and what ROA primarily indicates.

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