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What is one key ratio that might be used to best assess a company? Or does...

What is one key ratio that might be used to best assess a company? Or does it depend?

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Multiple ratios can be used to judge the performance of the company however one key ratio is the return on equity. Return on equity is the return that is available to the shareholders after all the payments have been made and determines the profitability in terms of the shareholders investment. One of the major goals of a company is to maximize the wealth of the shareholders i.e. increase the value of their investment and the profit that the firm earns creates value.

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