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 nonrecurring 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 MatchesReturnReturnThe 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 returnJoint tax returnTax return filed by two people, usually spouses. Rate of returnRate of returnThe percentage of an asset's value that the owner of the asset earns, usually per year. Separate tax returnsSeparate tax returnsTax returns of married persons who choose to file their returns individually, usually because this approach produces lower overall tax payments. Simple rate of returnSimple rate of returnThe 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 Suggestionsannual returnRate 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 
