Return on equity

 

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Return on equity

The 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 Matches

Return

Return

The amount that is earned by someone who holds an asset, usually expressed as a percentage of what it cost to acquire the asset. The return includes interest, dividends, and capital gains and losses, the latter due to both changes in the price of the asset and, for international holdings, changes in exchange rates.


Joint tax return

Joint tax return

Tax return filed by two people, usually spouses.


Rate of return

Rate of return

The percentage of an asset's value that the owner of the asset earns, usually per year.


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.


Simple rate of return

Simple rate of return

The return from investments figured by dividing income plus capital gains by the amount of capital invested. The effect of compounding is not taken into account.


Further Suggestions

annual return
Rate Of Return
Expected future return
Return to maturity expectations
Law of Diminishing Returns
Interim rate of return
Maximum expected return criterion (MERC)
Increasing returns to scale
Expected return on investment
Average accounting return
Specific Return
Risk adjusted return
Return on assets (ROA)
Mean return
Return of capital
Rate of return
return on investment
Return on equity (ROE)
Unleveraged required return
Market RRR (required rate of return) Schedule
Total dollar return
Real return
Holding period return
Total return
Individual tax return


 
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