Entries Tagged as 'Financial Analysis'

May 10, 2007

Analysing a Firm’s Financial Performance

With all the numbers displayed on a profit-oriented firm’s financial statements, everything boils down to one figure: the ROE. The ROE or Return on Equity is a ratio that measures a firm’s ability to generate net income for every peso of capital put in by investors. The ROE is computed as follows:

Net income, as some [...]