Evertonian
Member
anyone still cramming for business...i am
I thought Return on Owners equity=Net Profit/ OE x100quick question
when doing return on owners equity ratio, do we use just capital. or capital plus retained profits
You can do either all of OE or just capital. But I don't think you can use retained profits by itself.yeah but owners equity has both capital and retained profits. so ur saying we take into accoutn both of them>
I'm guessing so because all the formulas i've seen don't differentiate they just say OE.yeah but owners equity has both capital and retained profits. so ur saying we take into accoutn both of them>