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# If net income is negative and equity is positive than what…

Customer Question
If net income is...

If net income is negative and equity is positive than what will be ROE?

In calculation what will be sign with ROE

Tutor's Assistant: Is there anything else important you think the Tutor should know?

When will I get my answer?

Submitted: 6 months ago.Category: Single Problem
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9/17/2017
Business Tutor: Manal Elkhoshkhany, Bachelor's Degree replied 6 months ago
Manal Elkhoshkhany, Bachelor's Degree
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Hello,

Is this the only question you have?

Customer reply replied 6 months ago
Actually I am calculating ROE for different companies ,but with negative income and negative equity I got confuse ,How can I interpret it.
Customer reply replied 6 months ago
I am student don't have enough money.
Customer reply replied 6 months ago
Business Tutor: Manal Elkhoshkhany, Bachelor's Degree replied 6 months ago

Please note that this is a paid site but your question is simple anyway :) so no problem. When you divide any negative number by a positive number the result is a negative number and when you divide a any positive number by a negative number the result is negative.

When you divide positive by positive the result is positive

When you divide negative by negative the result is positive

Hope this helps

All the best

Customer reply replied 6 months ago
but when we got ROE negative ,,how can we interpret it?
Customer reply replied 6 months ago
Business Tutor: Manal Elkhoshkhany, Bachelor's Degree replied 6 months ago

It means that the firm's operations are not successful and resulted in a net loss

Business Tutor: Manal Elkhoshkhany, Bachelor's Degree replied 6 months ago

I am sorry, I will opt out from this post. Thank you

Business Tutor: Dr. Donna Kakonge, Retired College Professor replied 6 months ago
Dr. Donna Kakonge, Retired College Professor
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Dear Customer,

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