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What does a negative return on equity (ROE) indicate?

Practice Questions

1 question
Q1
What does a negative return on equity (ROE) indicate?
  1. The company is profitable
  2. The company is losing money
  3. The company has high debt
  4. The company is growing

Questions & Step-by-step Solutions

1 item
Q
Q: What does a negative return on equity (ROE) indicate?
Solution: A negative return on equity (ROE) indicates that the company is losing money relative to its equity.
Steps: 0

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