I was wondering if anyone could help me with my ROE calculations? I got varied information, one of which says that simply subtracting liabilities from assets on the balance sheet would give us the business' equity, but another said that it is under stockholders equity? And after doing the calculation (in this case for apple) both produced wildly different results, both of which rather implausible.
1) Net Income / Stockholders equity = 0.61 or 61% --> which from my understanding means that for each dollar a stockholder invests, it returns 61 cents??
2) Net income / ( assets - Liabilities ) = 0.237 or ~24%
I understand this is quite a newbie question and probably incredibly simple, but the wild variations in other ROE calculations has left me quite unsure both of my calculation and my understanding.
Any help is genuinely appreciated, and thank you for your time 📷
Submitted December 06, 2019 at 10:33PM by TurtleNipz9 https://ift.tt/34YvpJz
