Return on Equity (ROE)

Return on Equity (ROE)
Measure of profitability denoted as percentage. Formula – net income for past one year period divided by total common stocks held by public (splits to be factored in). ROE shows how funds of a business are being deployed. Decomposed into financial leverage multiplied by ROA.

Random Finance Terms for the Letter S

  • Retracement
  • Return
  • Return on Assets (ROA)
  • Return on Capital Employed
  • Return on Capital Employed
  • Return on Equity (ROE)
  • Return on Investment (ROI)
  • Return on Total Assets
  • Revaluation
  • Revenue Bond