Difference between revisions of "Return on common stockholders' equity ratio"
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According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | ||
:[[Return on common stockholders' equity ratio]]. A profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock. | :[[Return on common stockholders' equity ratio]]. A profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Rate of return on common stockholders' equity]]. Net income minus preferred dividends divided by average common stockholders' equity. It is a measure of profitability; also called return on equity. | ||
==Related concepts== | ==Related concepts== | ||
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*[[Principles of Accounting]]. | *[[Principles of Accounting]]. | ||
| − | [[Category: International Accounting]][[Category: Articles]] | + | [[Category: International Accounting]][[Category: Articles]][[Category: Accounting]] |
Latest revision as of 18:24, 16 July 2020
Return on common stockholders' equity ratio (alternatively known as rate of return on common stockholders' equity) is a profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Return on common stockholders' equity ratio. A profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Rate of return on common stockholders' equity. Net income minus preferred dividends divided by average common stockholders' equity. It is a measure of profitability; also called return on equity.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
