return on equity (ROE)

Popular Terms
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.

Use 'return on equity (ROE)' in a Sentence

Being able to accurately gauge your return on equity can let you know how much your business is really worth.
18 people found this helpful
The return on equity provided to us by the investment was more than we expected so we doubled our investment.
16 people found this helpful
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.
14 people found this helpful

Email Print Embed