It is the ratio of a company’s after-tax profits to its net assets, a rate of return on the appreciation of free capital, and the ratio of a company’s net profits to its average net assets.
Return on equity can also be called return on shareholders’ equity, return on equity or return on net worth. It represents free capital and its appreciation. Return on equity, which is the company’s n
Return on equity is mainly its significance, reflects the free capital using efficiency.
The factors that affect the return on net assets are the rate of return on total assets, the interest rate of its liabilities, and the income tax rate of enterprises.