how do you increase return on equity
A company can improve its return on equity in a number of ways, but here are the five most common. 1. Use more financial leverage. Companies can finance themselves with debt and equity capital. By increasing the amount of debt capital relative to its equity capital, a company can increase its return on equity. We'll use a (fictional) lemonade stand as an example for how the use of debt can increase a company's return on equity.