Will Corporate Performance Decline in an Improving Economy? Available to Purchase

Measuring corporate performance is difficult. No single measure can fully describe how well a firm is doing in the diverse aspects of its operations. As a result, analysts are forced to choose between synthesizing the dozens of ratios that describe a company or relying on simple aggregate measures to summarize overall performance. Return on equity (ROE) is one of the most popular of the latter indices. For example, ROE is used widely by investors in appraising common stock purchases, and by corporate planners in evaluating corporate performance.