ROA/ROE Analysis
The Return On Equity (ROE) and the Return On Assets (ROA) analyses are measures of the business efficiency in using its resources (equity and assets).
It is interesting to observe the trends in these ratios during the analysis period and how these changes relate to changes in the sub components that build the ratios.
The Formula
ROE = [Equity Turnover] * [Return on Sales]
Where:
Equity Turnover = Total Sales / Total Equity
Return on Sales= Net Profit / Total Sales
Total Equity = Retained Earnings + Owners Equity
Net Profit = Sales - C.O.G.S - Other Expenses - Tax Provision
ROA = [Assets Turnover] * [Return on Sales]
Where:
Assets = Total Sales / Total Assets
Return on Sales = Net Profit [ Total Sales
Total Assets= Current Assets + Fixed Assets
Net Profit = Sales- C.O.G.S - Other Expenses - Tax Provision
The screen presents also a chart that shows the ROE or ROA ratio and its components for a selected period as a diagram.
Toolbar Buttons
The toolbar includes the following buttons:
 OK - Close screen (and save all changes if applicable)
 Print Table - Create a report for the current table, showing it on the print preview screen
 Display Years Only - Display years only or all the periods
 Export to MS Excel file - Exports the displayed table to MS Excel
ROA/ROE Option
Select if to presents the ROA or the ROE analysis
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