return on equity (ROE)
Definition
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.
return on equity (ROE) is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
return on equity (ROE) appears in the definitions of the following terms: performance analysis, key ratios, weighted average cost of capital and return on assets (ROA)
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