MANAGEMENT

Detailed explanation-1: -The return on shareholders’ equity ratio shows how much money is returned to the owners as a percentage of the money they have invested or retained in the company. It is one of five calculations used to measure profitability.

Detailed explanation-2: -The Net Income Ratio measures how effective your organization is at generating profit on each dollar of earned premium. This KPI is used to measure the profitability of your organization and is primarily used for internal comparison.

Detailed explanation-3: -Net Income appears on both the income statement and the statement of owner s equity. The net income as per the income statement is carried over to the statement of owner’s equity. The Capital Account’s ending balance appears on both the balance sheet and the statement of owner’s equity.

Detailed explanation-4: -Net income (NI) is calculated as revenues minus expenses, interest, and taxes. Earnings per share are calculated using NI. Investors should review the numbers used to calculate NI because expenses can be hidden in accounting methods, or revenues can be inflated.