What is Return on Shareholder s funds? What does it show?

What is Return on Shareholder's funds? What does it show?


Return on Shareholders’ Funds is one of the ratios of overall profitability group, which indicates the profitability of a firm in relation to the funds supplied by the shareholders or owners. This ratio is very important from the owner’s point of view as it helps the firm to know whether the firm has earned enough returns to repay its shareholders or not. This ratio is calculated in two ways:

Formula to calculate Return on Shareholders Funds = (Net profit after taxes / Total shareholders' funds) X 100

Formula to calculate Return on Shareholders Funds = {(Net profit after taxes - Preference dividend)/ Shareholders' funds} X 100
What is Capital Gearing Ratio? What does it indicate?
Capital Gearing Ratio is one of the ratios of miscellaneous group, which measures the fixed income bearing …
What is a Fund Flow Statement? Why should a business prepare it?
Funds flow statement is a statement which is prepared in order to determine the sources and application of funds...What are the limitations of a Funds Flow Statement?..
What columns are there in a Funds Flow Statement? What are the components of each column?
The columns in Funds Flow Statements are:-Balance column,….
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