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You have observed that Rock Solid Enterprises' ROA is quite low, at 2.3%. However, then you checked the Company's ROE and it is quite fine
You have observed that Rock Solid Enterprises' ROA is quite low, at 2.3%. However, then you checked the Company's ROE and it is quite fine at 11.4%. How is this possible? Please provide the components of ROA, and ROE, and explain why the difference between them can create the situation you see with Rock Solid Enterprises. One point each for correctly showing the primary components parts of ROA and ROE, and two points for describing the difference correctly and clearly
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