Which financial ratio measures a company's ability to generate profit from its shareholders' equity?

کون سا مالی تناسب کسی کمپنی کے حصص یافتگان کی ایکویٹی سے منافع کمانے کی صلاحیت کی پیمائش کرتا ہے؟
Answer: Return on Equity (ROE)
Explanation

ROE = Net Income ÷ Shareholders’ Equity.

It shows how efficiently a company uses shareholders' funds to generate profit.

This question appeared in Past Papers (4 times)
SPSC 25 Years Past Papers Subject Wise (Solved) (1 times)
This question appeared in Subjects (1 times)
ACCOUNTING (1 times)

Install this app on your device for quick access right from your home screen.