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The Relative Power of Buyers Affects Segment Attractiveness

question 23

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The relative power of buyers affects segment attractiveness.


Definitions:

ROE

Return on Equity; a financial ratio that measures the profitability of a company in relation to the amount of equity, indicating how effectively shareholder equity is being utilized to generate profits.

Financial Leverage

Employing borrowed funds to amplify the potential gains from an investment, while also elevating the likelihood of incurring losses.

ROA

Return On Assets indicates how efficiently a company utilizes its assets to generate profit, calculated as net income divided by total assets.

Total Assets

The total of everything of value owned by a company, including cash, investments, property, and equipment, as recorded on the balance sheet.

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