Return on Equity (ROE)
Content
Definition
Return on Equity (ROE) measures a corporation`s profitability by revealing how much profit a company generates with the money shareholders have invested.
Usage and Context
Return on equity (ROE) indicates the profit a company earns with the money invested by shareholders.
Frequently asked questions
- What does the return on equity ROE ratio measure? ROE (Return on Equity) indicates how effectively a company is using its shareholders` money to generate profits.
- Which ROE measures a corporation`s profitability by revealing how much profit a company generates from? Return on Equity (ROE) indicates the profit generated from shareholders` equity.
- What does ROE stand for? ROE stands for Return on Equity, a measure of how profitable a company is in relation to shareholders’ equity.
Benefits
Return on equity (ROE) reveals the profit a company generates with shareholder investments.
Conclusion
Return on equity (ROE) shows the profit made from the money shareholders have invested.
