Simonz Co Had a ROE of 12% Last Year, and the the ROE

question 87

Essay

Simonz Co. had a ROE of 12% last year, and the ROE increased to 40% this year. At the same time, the profit margin decreased. How is this possible?

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Definitions:

Labour Expenses

Expenses related to employee compensation, such as paychecks, bonuses, benefits, and tax contributions.

Labour Force

The total number of people aged 16 and over who are either employed or actively seeking employment.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, techniques, systems, and methods of organization.

Benchmarking HR Activities

The practice of comparing an organization's HR processes and performance metrics to industry standards or best practices to identify areas of improvement.