Return on equity (ROE) is a measure of how much return a company generates with the money invested by its shareholders. ROE is typically measured by dividing net income by average shareholder’s equity. ROE can be increased in several different ways with different implications for shareholders; therefore, it is an important measure for owners to […]

A business unit should be closed if it consistently under-performs, has a net operating loss, and will likely continue to do so in the future. This statement sounds true – this should be an easy decision. Closing the business unit, however, could be exactly the wrong thing to do and could end up hurting a […]