ROE. A measure of how well a company used reinvested earnings to generate additional earnings, equal to a fiscal year's after-tax income (after preferred stock dividends but before common stock dividends) divided by book value, expressed as a percentage. It is used as a general indication of the company's efficiency; in other words, how much profit it is able to generate given the resources provided by its stockholders. investors usually look for companies with returns on equity that are high and growing.
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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 ...
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Return on equity (ROE) measures the rate of return on the ownership interest ( shareholders' equity) of the common stock owners. It measures a firm's efficiency ...
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Definition of Return on Equity: ROE. A measure of how well a company used reinvested earnings to generate additional earnings, equal to a fiscal year's ...