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What Does Return On Equity - ROE Mean?; The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
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Return on equity - Wikipedia, the free encyclopedia
Return on Equity ( ROE , Return on average common equity , return on net worth , Return on ordinary shareholders' funds ) (requity) measures the rate of return on the ownership interest (shar...
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Return on equity tells investors how efficiently a company is using its assets to generate earnings. ... Understanding Return on Equity ... Return on Equity (ROE) is one measure of how efficiently a company uses its assets to produce earnings. You calculate ROE by dividing Net Income by Book Value. A healthy company may produce...
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The idea is that this tells you the number of dollars of profits the company can earn for each dollar of shareholders' equity; but Return on Assets is probably a better number to look at. (After all, their profitability is a function of all assets they control, not just of the equity portion of assets.
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This article from The Investment FAQ discusses analysis, specifically return on equity versus return on capital. ... Subject: Analysis - Return on Equity versus Return on Capita...
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