What Are the Key Problems With Return On Shareholders Funds Ratio Analysis of a Company or an Industry?
Three possible key problems with the Return On Shareholders Funds (ROSF) percentage are: • Industry and investors put too much emphasis on the ROSF ratio without carrying out analysis of the supporting key profitability ratios. • Industry and investors often do not do enough analysis with similar companies. • Industry and investors can find it difficult to get industry benchmark ROSF ratios.