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Return on equity |
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Return on equityThe adjusted profit of a company divided by its equity. For instance, if the adjusted profit of a company is £1m and Equity is £10m, the Return on Equity is 10%.Adjusted profit is the profit of the company adjusted to exclude the impact of non-recurring exceptional gains, losses, income and charges. The figure can be found in the company's Profit and Loss Account. Equity is the total of ordinary share capital plus reserves, and both figures appear in the company's Balance Sheet. In calculating Return on Equity, you can use the Equity at the end of the year or the average between the opening and closing equity.Similar MatchesRequired returnRequired returnThe minimum expected return you would need in order to purchase an asset, that is, to make the investment. Rate of return ratiosRate of return ratiosRatios that measure the profitability of a firm in relation to various measures of investment in the firm. Consolidated tax returnConsolidated tax returnA tax return combining the reports of affiliated companies, that are at least 80% owned by a parent company. Rate of returnRate of returnCalculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return. Real rate of returnReal rate of returnThe percentage return on some investments that has been adjusted for inflation. Further SuggestionsLaw of Diminishing ReturnsDividend Discount Return Risk return tradeoff Rate of return Compound Annual Return Return on equity (ROE) Money rate of return Expost average rate of return Multiple rates of return Holding period return Horizon return Systematic Return "Static" Return Mean return Rate Of Return Cumulative abnormal return (CAR) Risk adjusted return Real return Expected future return T period holding period return Maximum expected return criterion (MERC) Leveraged required return Return on assets (ROA) Individual tax return Return to capital |
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