- Measures the relationship between earnings before interest and taxes (EBIT) and shareholders’ investment
- Indicates profitability and efficiency
- Favorable: higher result
- Higher results indicate more efficient use of capital
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Learn financial accounting using beautifully illustrated flashcards, coordinated lessons, and rich audio. Whether you are an aspiring CPA or IFRS expert, use this accountancy app to reach your goals. Even an aspiring chartered accountant or those reaching for the CPA Australia can benefit. Topics of accounting standards, equation, terms, ratios, and more are covered.
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