Final answer:
ROA and ROE are financial ratios that evaluate a company's profitability and efficiency. They are not accounting principles, management metrics, nor economic indicators. EROEI is comparable in concept and tracks the energy gain from an energy investment.
Step-by-step explanation:
ROA (Return on Assets) and ROE (Return on Equity) are both financial ratios. They are tools used in financial analysis to assess a company's profitability. ROA measures the efficiency of a company's management by showing the net income produced by total assets. Meanwhile, ROE is a measure of the profitability of a company in relation to its equity, indicating how effective the management is at using equity financing to fund operations and grow the company. Neither are accounting principles, management metrics, nor economic indicators.
Comparatively, in discussing energy sources, EROEI (Energy Returned on Energy Invested) is a concept somewhat analogous, where it calculates the energy gain from an energy source. It tells us how much energy is produced for every unit of energy invested. For instance, an EROEI of 9:1 indicates there is a net gain of 8 units for every 1 unit invested, making it an effective energy source.