return on equity (ROE)

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Ratio measuring stockholders' (shareholders') profitability, expressed as a percentage of the firm's net worth. ROE indicates a firm's efficiency in applying common-stockholders' (ordinary-shareholders') money. Formula: Net income ÷ Net worth.

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Being able to accurately gauge your return on equity can let you know how much your business is really worth.
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The return on equity provided to us by the investment was more than we expected so we doubled our investment.
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I wondered if our firm would receive a return on equity because we had lost a lot of money and could use some in return.
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