Return on equity (ROE),
Definition of Return on equity (ROE):
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?
- 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.
- The return on equity provided to us by the investment was more than we expected so we doubled our investment.
- 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