Question
If one was to start a business, could you rank which profitability ratio would be best? 1. Return on Equity (ROE) 2. Return on Assets
If one was to start a business, could you rank which profitability ratio would be best?
1. Return on Equity (ROE)
2. Return on Assets (ROA)
3. Market Share (MS)
4. Stock Price (SP)
5. Unit Production Cost (UPC)
6. Total Net Income (TNI)
I understand this is subjective. You will be given a thumbs-up, regardless. I ask this to help determine how I should/could split up 20 total points amongst these 6 categories for a business game simulation. I cannot find much information in our text for this course. So if you could rank them 1-6, where and why would you put them there? Which do you think is the best ratio to focus the most on? Thank you in advance.
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