Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Discuss the difference between the Rsquared and the adjusted R squared
R-squared tells you how well your model explains the variation in your data, while adjusted R-squared refines this measure to consider model complexity, making it a more reliable metric when dealing with multiple predictors.
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