How to use return on total assets, return on equity and net interest rate to analyze financial risks?
How to analyze financial risks with return on total assets, return on net assets and net interest rate? Return on total assets and ROE are analyzed together with net profit/shareholders' equity, and the difference between them can explain the risk degree of the company's operation. For a company with little net assets left, although its index value is relatively high, it still does not mean that its risk is small; Return on net assets, as one of the necessary conditions for rights issue, is an important reference index for the company to adjust its profits.