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Energy Systems Fundementals > Finance Terms > Flashcards

Finance Terms Flashcards

1
Q

ROA vs ROE

A

ROA is a basic measure of the efficiency with which a company allocates and manages its resources. It differs from ROE in that it measures profit as a percentage of the money provided by owners and creditors as opposed to only the money provided by owners.

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2
Q

Gross Margin

A

The gross margin enables us to distinguish, insofar as possible, between fixed and variable costs.

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3
Q

Capital Intensity

A

Operating leverage,

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Energy Systems Fundementals (16 decks)

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