A Refresher on Return on Assets and Return on Equity
Harvard Business Review
APRIL 4, 2016
Technology companies have very few assets so they’ll often have high ROAs. What is Return on Equity (ROE)? Unlike ROA, you want the ROE to be as high as possible, but there are limitations. ” How do companies use ROA and ROE? What mistakes do people make when using ROA and ROE?
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