Return on equity (ROE)

Return on equity (ROE),

Definition of Return on equity (ROE):

  1. Ratio measuring stockholders (shareholders) profitability, expressed as a percentage of the firms net worth. ROE indicates a firms efficiency in applying common-stockholders (ordinary-shareholders) money. Formula: Net income ÷ Net worth.

How to use Return on equity (ROE) in a sentence?

  1. 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.
  2. The return on equity provided to us by the investment was more than we expected so we doubled our investment.
  3. Being able to accurately gauge your return on equity can let you know how much your business is really worth.

Meaning of Return on equity (ROE) & Return on equity (ROE) Definition