In ratio analysis, return on equity (ROE) formula

date：2026-10-13 15:54:35 author：admin browse： time View comments Add Collection

In ratio analysis, return on equity (ROE) formula

 In ratio analysis, return on equity (ROE) formula:

A. Net income / average total assets

B. Net income / average common equity

C. Sales / total assets

D. Current assets / current liabilities

Answer: B

Explanation: ROE = Net income / average stockholders’ equity.