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 Matches

Cumulative total return

Cumulative total return

The actual performance of a fund over a particular period.


Money rate of return

Money rate of return

Annual money return as a percentage of asset value.


Return on investment (ROI)

Return on investment (ROI)

Generally, book income as a proportion of net book value.


Separate tax returns

Separate tax returns

Tax returns of married persons who choose to file their returns individually, usually because this approach produces lower overall tax payments.


Specific Return

Specific Return

The part of the excess return not explained by common factors. The specific return is independent of (uncorrelated with) the common factors and the specific returns to other assets. It is also called the idiosyncratic return.


Further Suggestions

internal rate of return
External increasing returns to scale
Diminishing returns
Market RRR (required rate of return) Schedule
Certainty Equivalent Return
return on total assets
Return if Exercised
Return on sales
Incremental internal rate of return
tax return
joint tax return
Risk return trade off
Pretax rate of return
Realized return
Cumulative abnormal return (CAR)
Average accounting return
Simple rate of return
Fair rate of return
Excess return on the market portfolio
Expected return beta relationship
Rate of return ratios
Compound Annual Return
Inheritance tax return
Arithmetic average (mean) rate of return
Portfolio internal rate of return


 
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