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I'm trying to interpret some differences between the return on equity and the return on net operating assets. I have calculated ROE to be 7.59%
I'm trying to interpret some differences between the return on equity and the return on net operating assets. I have calculated ROE to be 7.59% in 2019 and 2.82% in 2018.
The RNOA is 13.88% (2019) and 5.77% (2018)
I assume this has something to do with the debt load that changed between the two years, but I'm having trouble putting the puzzle together to actually understand the numbers and why they might change so drastically over one year. Thank you!
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