1, return on equity (ROE) is an important financial indicator to measure the efficiency of a company in using its own capital. Net profit is the profit earned by the company in a fiscal year, while shareholders' equity represents the equity capital of the company's shareholders. Return on net assets is actually the ratio of the company's net profit to shareholders' equity, which is used to measure the company's ability to create value for shareholders.
2. To calculate the return on net assets, we must first determine the values of net profit and shareholders' equity. Net profit can be obtained through the company's income statement, and shareholders' equity can be obtained through the company's balance sheet. When calculating the return on net assets, you can divide the net profit by shareholders' equity to get the result.
3. The higher the return on net assets, the higher the efficiency of the company's own capital operation, and the more value the company creates for shareholders. Therefore, investors usually pay attention to this indicator and regard it as an important basis for evaluating the company's operating performance and investment value.
The benefits of studying finance
1. Understanding economy: Finance is the core of economic development. Learning finance can help us better understand the basic laws and trends of economic operation and improve our economic literacy and judgment. Planning for the future: finance involves personal savings, investment, insurance and many other aspects. Learning finance can help us plan the future better, including financial management and career development.
2. Enhance risk awareness: There are many risks involved in the financial sector. Learning finance can help us better understand and deal with these risks and enhance our risk awareness and risk management ability. Increase employment opportunities: The financial industry is a huge industry, involving many companies and institutions. Studying finance can help us understand this industry and lay the foundation for our career development.
3. Improve investment ability: Learning finance can help us understand the basic principles and skills of investment and improve our investment ability, including investment in stocks, bonds and funds. Enhance decision-making ability: Finance involves many decisions. Learning finance can help us understand and master the basic principles and methods of decision-making, and improve our decision-making ability and judgment.