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. Knight gives the example of making do with older equipment. What is Return on Equity (ROE)? Banks, for example, get as many deposits as they can and then loan them out at a higher return. ” How do companies use ROA and ROE?
Let's personalize your content