Return on assets is the ratio of th

Return on assets is the ratio of the amount of profit to the average asset, and the higher the index, the higher the investmentThe higher the income. Through this index, we can see the profit source of commercial banks.The index is an important indicator of profitability. Profit on revenue is a measure of operating revenue per unitA profit; The higher the revenue margin, the more profit a bank generates per unit of operating revenueThe higher the profitability. Equity multiplier, reflecting the extent to which the operator uses equity. In itWhen determining the return on equity of commercial banks, the equity multiplier has a multiplier effect on the profit margin.If the return on assets of the two commercial banks is the same and the equity multiplier is different, the return isIn due course, commercial banks with larger equity multipliers will have higher returns on equity. Commercial silver and small equity multiplierMicrofinance leverage is good for commercial banks.