Covering Business Credit

Credit Questions and Answers
Business Credit and Collections
Commercial Credit Management

Return to Q and A 2003Home

spacer
 
Doctor Credit

What is the formula for calculating Return on Equity, and Return on Assets?

Answer: : There are several. We prefer this one:

ROE =Net Income - Preferred Stock Dividends / Average Common Stockholders
Equity

ROA = Net Income / Total Assets

 
spacer spacer

 


 

Web

www.coveringcredit.com