An extract from a boat retails 2020 financial statements follows: Income Statement Year ended Dec 31, 2020 Year ended Dec 31, 2019 Net Income 12,866 11,242 Balance Sheet As of Dec 31, 2020 As of Dec 31, 2019 Total Stockholders Equity 3,299 (3,116) What was the companys return on equity for 2020?
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.
An extract from a boat retails 2020 financial statements follows:
| Income Statement | Year ended Dec 31, 2020 | Year ended Dec 31, 2019 |
| Net Income | 12,866 | 11,242 |
| As of Dec 31, 2020 | As of Dec 31, 2019 | |
| Total |
3,299 | (3,116) |
What was the companys
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Net Income for 2020 = 12,866
Average
hence
Looking at the solution. Why is the 3,116 negative? I just wanted to make sure this was correct.
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