ROE & ROCE | Why these Ratios are Important?

so that the so that is a very good sign it means companies generating good profits on the shareholders equity it is using so that is one good indicator now we will go to the second indicator that is return on capital employed so capital employees so that's why here because there is a dead capital also that's why the numerator which is considered for this ratio is earnings before interest and taxes ebit divided by the total capital employed the equity capital which includes the returned earnings also and the debt capital that is the borrowings the company has borrowed from the markets not only shareholders capital this is one of the indicator which we should use so ro and foreign

Channel: Parimal Ade

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Id: Vqj7c9q5X5Q

Length: 8min 38sec (518 seconds)

Published: Tue Aug 11 2020