Return on Investment


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The two complementary approaches to return on investment are:

  • Return on total assets (ROTA)
  • Return on equity (ROE)

The two separate measures are necessary because they throw light on different aspects of the business, both of which are important. Return on total assets looks at the operating efficiency of the total enterprise, while return on equity considers how that operating efficiency is translated into benefit to the owners.

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We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

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