Question.3423 - 1. Analyze ROA and ROE and how each one fits into Profitability Ratios. 2. What is financial leverage? What are the benefits and risks associated with financial leverage?
Answer Below:
Both xxx ROA xxx ROE xxxx been xxxxxxxxxx the xxx profitability xxxxxx however xxxx measure xxxxxxxxx aspects xx a xxxxxxx s xxxxxxxxxxxxx According xx Supriyadi xxxxxxx Return xx Assets xxx has xxxx indicating xxx effectiveness xx the xxxxxxx in xxxxxxxxxx profit xxxx its xxxxx assets xx the xxxxx hand xxx ROE xx Return xx Equity xxxxxxx on xxxxxx generation xxxxxxxxxxxx from xxx shareholder xxxxxx This xxxxxxxxx taking xxxx account xxx and xxx the xxxxxxx s xxxx leverage xxxx assessing xxxxxxxxxxxxx They xxx into xxx profitability xxxxxx where xxx and xxx together xxxxxxx a xxxx complete xxxxxxx of xxxxxxxxxx for x company x ratio xxxx its xxxxxxxxxxx within xxx same xxxxxxxx Apart xxxx this xx would xxxx focus xx trend xxxxxxxx indicating xxxxxxx a xxxxxxx is xxxxxxxxx its xxxxxxxxxxxxx and xxxxxxxx its xxxxxx effectively xxxxxxxxx leverage xxx been xxx practice xx using xxxxxxxx money xx debt xx financing xxxxxxxxxxx essentially xxx the xxxxxxxxxxxxx of xxxxxxxxx returns xx assets xx utilizing xxxxxxxx funds xxxxxxx the xxx benefit xx financial xxxxxxxx is xxxxx on xxxxxxxxxx higher xxxxxxx with xxxxxxx amounts xx personal xxxxxxx while xxx main xxxx increases xxxx financial xxxxxxxxxxxxx due xx the xxxx to xxxxx the xxxx even xxxx the xxxxxxxxxx has xxx been xxxxxxxxxx well xxxxxxxx et xx Similarly xxxxx benefits xxxxxxxxx the xxxxxxxxx for xxxxxx returns xxxxxx acceleration xxx tax xxxxxxxxxx could xx evident xxxx financial xxxxxxxx On xxx contrary xxxxxxx other xxxxx are xxxx related xx financial xxxxxxxx such xx increasing xxx risk xx insolvency xxxxxxx volatility xxxxxxxx rate xxxx and xxxxxx rating xxxxxx References xxxxxxxx I xxxxxxxx N xxxxxxxx T xxxxxxxx A x O xxx consequences xx financial xxxxxxxx Certified x Corporations xxxxxxxxxx compared xx common xxxxxxxxxx firms xxxxxxx of xxxxxxxx Ethics x Supriyadi x Terbuka x Effect xx return xx assets xxx return xx equity xxx and xxx profit xxxxxx NPM xx the xxxxxxx s xxxxx in xxxxxxxxxxxxx companies xxxxxx on xxx exchange xxxxxxxxx securities xxxx - xxxxxxxxxxxxx Journal xx Economics xxxxxxxx and xxxxxxxxxx Research xxxxMore Articles From Management
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