Examlex
Which of the following statements concerning critical thinking is incorrect?
ROA
Return on Assets, a financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficient management is in using assets to generate earnings.
Debt/Equity Ratio
A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.
ROE
Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using its equity to create profits.
P/E Ratio
The price-to-earnings ratio, a valuation metric for assessing a company's current share price relative to its per-share earnings.
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