THE EFFECT OF RETURN ON ASSETS AND RETURN ON EQUITY ON THE GROWTH OF MICRO OPERATING PROFITS

Abstract

This study aims to determine the relationship between Return on Asset and Return on Equity to Profit Growth. Profit growth is a ratio that describes a company's ability to maintain profits in each period amidst economic growth and its business sector. Business profit growth can be measured by looking at sales growth. This measurement can only see company growth from the company's marketing aspect only. Another measurement is to look at net profit growth, where the input for this net profit growth is capital, while the output is profit. The final measurement of company growth is through measuring the growth of its own capital.

Keywords

• return on asset
• return on equity
• profit growth
• micro business