BA490 Business Policy And Strategy
Chadwick Green
BA490 Business Policy and Strategy
Profitability Measures
Grantham University
I feel that all of the six performance measures are all useful indicators of how well a company is being managed, but if I had to pick two they would be return on equity and return on sales. Return on equity represents more profit for the shareholder’s. ROE also shows how well the business is using and managing the money. A company with high return on equity will be better off for growth in the future, increasing the value of the company. An increase return on equity normally is consistent with an increase of the firm value. This performance measure also can be used to compare with other companies.
Return on sales is another effective
BA490 Business Policy and Strategy
Profitability Measures
Grantham University
I feel that all of the six performance measures are all useful indicators of how well a company is being managed, but if I had to pick two they would be return on equity and return on sales. Return on equity represents more profit for the shareholder’s. ROE also shows how well the business is using and managing the money. A company with high return on equity will be better off for growth in the future, increasing the value of the company. An increase return on equity normally is consistent with an increase of the firm value. This performance measure also can be used to compare with other companies.
Return on sales is another effective