Both ROA and ROE measure profitability. What does each of them measure, and which one is more

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Both ROA and ROE measure profitability. What does each of them measure, and which one is more useful for comparing two companies? Why?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 19, 2024 01:00 AM

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Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why?
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Both ROA and ROE measure profitability. What does each of them measure, and which one is more

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Return on Assets ROA and Return on Equity ROE are both financial ratios that measure profitability b...View the full answer

Corporate Finance

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