Return on common stockholders' equity is most closely related to

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Return on common stockholders' equity is a measure of how efficiently a company is utilizing equity investments to generate profits. It is calculated by dividing net income by average common stockholders' equity. Therefore, it is most closely related to return on assets (ROA), which measures how efficiently a company is using its assets to generate profits, and leverage, which is indicated by the debt to assets ratio.

Return on Common Stockholders' Equity Is Most Closely Related to