Question: The Return on Equity (ROE) is a metric that will help you understand how efficient a company is at generating profits from its equity. However,

The Return on Equity (ROE) is a metric that will help you understand how efficient a company is at generating profits from its equity. However, just looking at ROE alone could be misleading. What are some drawbacks of ROE and what are other metrics you could use to complement ROE and get a better idea of the overall financial condition of the company you are analyzing?

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1. Effort is important.

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