What is the companys return on equity

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Reference no: EM131313240

When would you want to use the basic earning power to compare companies instead of the return on assets?

If a company has a return on assets of 10% and has a debt-to-assets ratio of 50%, what is the company's return on equity? Suppose you calculate the following ratios for two companies, A and B.

	Company A	Company B
Current ratio	2	2
Quick ratio	1	1.5

What can you say about the relative investment in inventory?

Reference no: EM131313240

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