ROA
- How profitable a company is relative to its total assets.
- Effective while comparing similar companies and checking past performance.
- Company's debt, taken into account
- Higher the ROA number is the better
ROCE
- Sum of shareholders equity and debt liabilities.
- Profit generated by each rupee employed
ROE
- Depends on comparing with historical ROE & Industry Peers.
- Thumb Rule is anything less than broader index avg is poor.
- Extremely high ROE is risk
- High ROE is excess debt
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