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return on equity

 

Definitions from the Web

Return on Equity

Definition: Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation to the shareholders' equity.

Usage:

  1. In the world of finance, return on equity is a key metric used by investors to evaluate the financial performance of a company.
  2. Analysts often consider a high return on equity as a positive indication of a company's ability to generate profits from the funds invested by shareholders.
  3. Investors can compare the return on equity of different companies within the same industry to assess their relative performance.

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