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Fayol believed that decision-making authority should remain in the hands of top management
Return on Equity
A measure of a corporation's profitability, calculated by dividing net income by shareholder equity, indicating how effectively equity is utilized to generate profits.
Return on Assets
A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently assets generate profits.
Fixed Asset Turnover
A financial ratio that measures how efficiently a company uses its fixed assets to generate sales.
Du Pont Identity
A financial formula that breaks down return on equity into three component parts: profit margin, asset turnover, and financial leverage.
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