Question:

What is gross profit divided by average total stockholders' equity?

by Guest59517  |  earlier

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What is gross profit divided by average total stockholders' equity?

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2 ANSWERS


  1. That is the "Return on Equity" ratio and it measures earnings to owners as measured by net assets.


  2. A meaningless ratio.

    Edit: it is not Return on Equity. That ratio is calculated by using net income, not gross profit.

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