How do I calculate ROE?

ChaoZ

Diamond Member
Apr 5, 2000
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The following are given: Net income, Assets, Sales, and debt to total assets ratio.
It doesn't state the equity value, so I have no idea how to get ROE.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: ChaoZ
The following are given: Net income, Assets, Sales, and debt to total assets ratio.
It doesn't state the equity value, so I have no idea how to get ROE.

Can't believe you can't figure this out...

Lets say debt/assets = 80%
Assets = 100

That means that debt = 80

A = L + E

100 = 80 - X
X = 20

Lets say NI = 10

10/20 = 50% ROE.


Got Google?
 

ChaoZ

Diamond Member
Apr 5, 2000
8,906
1
0
Awesome, totally forgot about the basic accounting equation. Here's a cookie :cookie: