$8$an $-$ Which one of the following statements correctly describes the application of the return on equity $(ROE)$ ratio?

a$.$ It indicates how much profit equity generates.

b$.$ It compares the entity's total liabilities to its total assets.

c$.$ It measures the ability of an entity to meet its current liabilities with its stock of inventory.

d$.$ It assesses the entity's efficiency in using its longterm investments to generate earnings.

e$.$ It is used to measure the proportion of total assets financed by debt.