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Premium Content » Profitability and Return » Return on Equity Vs. Cost of Borrowed Funds

Return on Equity Vs Cost of Borrowed Funds

Ever wondered whether businesses in higher-inflation, higher-interest rate economies enjoy higher or lower Return on Equity than those in lower-inflation, lower-interest rate ones?

Below is graphical visualization is an attempt to see what if any correlation if any exists between Return on Equity and Cost of borrowed funds.

The ratios, analyses represented in the below chart are based on information drawn from financials (e.g. financial statements comprising balance sheet, income statement or profit & loss account) of listed companies across the globe.