Explain the use of return on assets (ROA) and the price-to-earnings (PE) ratio in evaluating the performance of a company.
Respond to the following (Use 175 words use one resource):
1.Think about some of the influences and measures of company performance that you read about this week.
2.Explain the use of return on assets (ROA) and the price-to-earnings (PE) ratio in evaluating the performance of a company.
3.Write about how to calculate ROA and PE ratio and how market conditions can affect these metrics.
4. Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company?
Explain return on assets (ROA) (use 50 words no resource – Use your own words)
Explain price-to-earnings (PE) (use 50 words no resource – Use your own words)