I find myself seeing ROE as a very situational measure to compare profitability between firms. The effect of leverage dampens its usefulness to me in most cases and I prefer to look at ROA to compare profitability while keeping in mind the leverage in risk analysis.
This is my brief opinion and I wanted to see what others thought and what are some reasons some of you like or dislike ROE.
Submitted November 11, 2018 at 01:55PM by INCEL_ANDY https://ift.tt/2POTZZ2
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