Return on Equity (ROE)
Return on Equity (ROE) measures a corporation`s profitability by revealing how much profit a company generates with the money shareholders have invested.
Benefits
Return on equity (ROE) reveals the profit a company generates with shareholder investments.
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.
Key Takeaway
Return on equity (ROE) shows the profit made from the money shareholders have invested.