a-companys-return-on-equity-roe-has-decreased-from-15-to-10-over-the-past-year-w

Question

A company's return on equity (ROE) has decreased from 15% to 10% over the past year. What might this suggest?

Accepted Answer

The company is generating less profit from its equity.

Answer

The company's debt has increased significantly.

Answer

The company's equity has decreased significantly.

Answer

The company is generating more profit from its equity.