What should a potential investor understand about the ratio

Reference no: EM13292034

In 2006, the Return on Equity was 14.3%. It dropped in 2007 by 2.8% to 11.5%. It dropped again in 2008 by 1.7% to be 9.8%. In 2009 it rose by 2.5% to become 12.3%, and it 2010 it rose drastically by 11.4% to become 23.7%. So how would we interpret the results of the ROE for ScottsMiracle -Gro from 2006-2010. What does it mean in terms of financial performance and what should a potential investor understand about the ratio?

Reference no: EM13292034

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