___ = Net Income ÷ Owner's Equity

A) Return on Equity
B) Return on Assets
C) Net Margin
D) Inventory Turnover
E) Acid Test

Return on Equity

A measure of a company's profitability that calculates how much profit is generated with the money shareholders have invested, reflecting financial performance and efficiency.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Owner's Equity

This financial term represents the owner’s interest in the assets of a business, calculated as the difference between the business assets and its liabilities.