Which of the following is not a component of return on equity (ROE)? A) Net income/sales B) Total assets/equity C) Equity/sales D) Sales/total assets E) Net Profit Margin

Question

Quizplus · Accepted Answer

The components of ROE are net income/sales (profit margin), sales/total assets (asset turnover), and total assets/equity (financial leverage). Equity/sales is not a component of ROE. Net profit margin is a component of ROE through net income/sales.

Which of the Following Is not a Component of Return