Which of the following is not a financial ratio used to calculate ROE?
A) economic efficiency
B) EBIT efficiency
C) asset turnover
D) leverage

Question

Quizplus · Accepted Answer

Economic efficiency is not a financial ratio used to calculate ROE. ROE is calculated using the following formula: ROE = Net Income / Shareholder Equity. Economic efficiency measures how well a company is using its assets to generate profits, while EBIT efficiency, asset turnover, and leverage are all financial ratios that are used to calculate ROE.

Which of the Following Is Not a Financial Ratio Used