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Return on equity (ROE) |
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Return on equity (ROE)Indicator of profitability. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits). Result is shown as a percentage. Investors use ROE as a measure of how a company is using its money. ROE may be decomposed into return on assets (ROA) multiplied by financial leverage (total assets/total equity).Return on equity (ROE) Similar MatchesDiminishing returnsDiminishing returnsThe fall in the marginal product of a factor or factors that eventually occurs as input of that factor rises, holding the input of at least one other factor fixed, according to the Law of Diminishing Returns. Risk adjusted returnRisk adjusted returnReturn earned on an asset normalized for the amount of risk associated with that asset. Return if ExercisedReturn if ExercisedThe return that a covered call writer would make if the underlying stock were called away. Law of Diminishing ReturnsLaw of Diminishing ReturnsThe principle that, in any production function, as the input of one factor rises holding other factors fixed, the marginal product of that factor must eventually decline. Return on assets (ROA)Return on assets (ROA)Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). Further SuggestionsExpost average rate of returnSimple rate of return Market return Rate of return return on capital employed Safety net return Pretax rate of return real return Return return on equity Expected return on investment Cumulative total return Required Rate of Return (RRR) Rate of return Return on sales Rate of return ratios Portfolio internal rate of return Average rate of return (ARR) Joint tax return Total return Risk return trade off Risk return tradeoff Annual rate of return Total return for calendar year Annualized holding period return |
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