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Prakash Jangid
|| Article Trainee || NISM VIII Certified || CA Finalist || Bachelor of Commerce || Helping Students ||
Hey Guyzz, Whats up ???
You all might have heard about ROA,ROE & ROI ratios of any entity....
A overview of these Ratios will be like this:-
ROA i.e; Return on Assets =EBIT(1-t)/Avg. Net Assets
????????:- How much we have earned w.r.t. Assets we put to the Business.
ROEi.e;Return on Equity=Earning availabe forEquity Shareholders/EquityShareholderfunds
????????:- How much we have funds available out of earning w.r.t. Equity is being put to the business
ROI i.e; Return on Investment= EAT+Interest/Capital Employed
????????:- Ratio of amount of Equity+preference w.r.t. amount earned by the amount that is EAT+Interest & EBIT
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