Analyzing the Financial Performance of Manufacturing Firms: A Focus on Return on Equity, Return on Assets and Return on Sales

Abstract

The research aims to delve into the financial performance of manufacturing firms, with a specific focus on key financial indicators such as Return on Equity (ROE), Return on Assets (ROA), and Return on Sales (ROS). These indicators are commonly used to assess a company's profitability, efficiency, and overall financial health. The study involved the analysis of the financial statements of selected manufacturing firms to compare and evaluate their performance based on these metrics. Return on Equity (ROE) measures a company's profitability relative to the equity of its shareholders. Return on Assets (ROA) indicates how efficiently a company is using its assets to generate earnings. Return on Sales (ROS) measures a company's ability to generate profits from its revenue. The research aims to provide valuable insights into the financial health and efficiency of manufacturing companies. The findings may have implications for various stakeholders, including investors, industry practitioners, and the companies themselves. Investors can use the insights to make informed decisions about their investment choices, while industry practitioners can gain valuable knowledge about improving financial performance. Additionally, Rwandan companies themselves can use the findings to identify areas for potential improvement in their financial management and operations.