ROE measures how many dollars of profit are generated for each dollar of shareholder's equity, and is thus a metric of how well the company utilizes its equity to generate profits. ROE is especially used …

Jun 17, 2025 · Return on equity (ROE) is a financial ratio that compares the net income generated by investors' capital, indicating how efficiently the capital is utilized.

Return on Equity (ROE) is a measure of a company’s profitability that takes a company’s annual return (net income) divided by the value of its total shareholders' equity.

Jul 18, 2025 · Return on Equity, abbreviated as ROE, is a critical financial indicator that measures a company’s profitability in relation to its shareholders’ equity. It offers a window into a company’s...

Feb 22, 2025 · Key Points Return on Equity (ROE) measures a company's profitability and financial efficiency. ROE is calculated by dividing annual net earnings by average shareholder equity.

Dec 22, 2025 · The difference between return on equity (ROE) and return on capital employed (ROCE) is that ROE measures net income divided by shareholders’ equity and ROCE measures EBIT …

Oct 20, 2024 · Understand return on equity (ROE), how to calculate it, and why it’s a key metric for investors assessing a company’s profitability and growth.

Oct 23, 2024 · Return on Equity (ROE) is a financial metric that measures a company’s profitability by calculating how much profit it generates with the money shareholders have invested. ROE is …

Return on equity, or ROE, is a profitability ratio that measures the rate of return on resources provided for by a company’s stockholders’ equity. Hence, it is also known as return on stockholders’ equity or …

ROE is one of the most important financial ratios and profitability metrics. It is often said to be the ultimate ratio or the ‘mother of all ratios’ that can be obtained from a company’s financial statement.