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.
Please rank the companies from greatest increase in net income between 2019 and 2020 to lowest increase in net income.
![Company 1
Company 2
Company 3
Company 4
Company 5
2016 Income (£)
810,492
821,464
858,715
727,529
901,253
2017 Income (£)
870,281
822,829
856,212
759,778
908,534
2018 Income (£)
863,425
820,259
858,933
802,407
903,118
2019 Income (£)
865,220
821,412
861,670
812,365
908,869
2020 Income (£)
868,532
823,003
860,244
821,228
910,024
You are reviewing major competitors' net income over the past 5 year period, with a view to understanding and predicting trends in graphic design
companies. You want to understand the increase in net income from 2019 to 2020.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3688a312-1b6e-40d4-973f-537807921925%2Fcacfa489-ba6e-4999-a2de-2dad7a1d1f58%2Fq003xwq_processed.png&w=3840&q=75)
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