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𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
ROE =𝑂𝑤𝑛𝑒𝑟’𝑠 𝑒𝑞𝑢𝑖𝑡𝑦 Commented [CT1]: Owner’s equity is how much the
owner invests in the business
Many ratios are needed to analyse the companies. What aspects of the performance do I
look for? Like profitability.