Negative values for numerator and denominator

[Yahya Ghazali]

Hello

I need some help here while creating a new variable. The problem is that both, numerator and denominator are negative values but the new variable which is created is a positive value. How can I create a variable in this situation so I can still obtain a negative value.

For instance, return on equity = Net Profit / Total Shareholder Equity. Due to the nature of the data, both variables are negative but Stata is providing me with a positive value on return on equity. The new variable should have a negative value.

Thanking you

[Maarten Buis]

The result must be positive by the rules of mathematics.

[Yahya Ghazali]

Thank you for your reply

I clearly understand that's the rule of mathematics but in terms of the data, we cannot have a positive value for return if both variables are negative. Is there any possible command which can take this different nature into account?

sincerely

[Nick Cox]

This can't be the first time someone in your field has had this problem. So what does the literature say and do? It sounds as if dividing by abs(equity) would get you what you want, but I can't vouch for its soundness.