Return on Equity (ROE)
Return on equity measures how much net profit a company generates for each unit of shareholders' equity, expressed as a percentage. It indicates how efficiently the company uses the capital belonging to its shareholders.
Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.
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Return on equity measures how much net profit a company generates for each unit of shareholders' equity, expressed as a percentage. It indicates how efficiently the company uses the capital belonging to its shareholders.