Understanding Return Ratios: Measuring Your Business Performance 📊💡 Hello VittArena Network! Return ratios are key to assessing how well your business is performing. Here’s a quick guide: # ROI (Return on Investment): Measures the gain or loss from an investment. It answers, "How much profit am I making per dollar invested?" # ROA (Return on Assets): Shows how efficiently assets are used to generate profit. It asks, "How well are my assets converting to earnings?" # ROE (Return on Equity): Indicates how well shareholder equity is used to generate profits. It evaluates, "How effectively am I using investors’ money?" At VittArena, we use these ratios to optimize your financial strategy. Discover more with our FP&A services.
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