财报分析例子 Chap012教学课件.ppt

* Return on equity measures the income earned for each dollar in stockholders’ equity. Return on equity relates net income to the investment made by owners of the business. The ratio is calculated by dividing net income by average stockholders’ equity. Under Armour has a return on equity of 12.8%. Its net income is 12.8 cents for every dollar invested. Nike has an even higher return on equity of 18.0%. Why is Nike’s return on assets 2.5 percentage points higher than Under Armour’s, while Nike’s return on equity is over 5 percentage points higher than Under Armour’s? The answer relates to fina