Example of ROE For example ... but it uses total assets in the denominator whereas ROE uses shareholders' equity. Return on invested capital (ROIC) also measures profitability relative to ...

Return on Equity (ROE) measures a company's profitability ... either of which could dilute or decrease shareholder value. In our above example, Joe's Holiday Warehouse, Inc. was able to generate ...

In the ROE formula, the numerator is net income or the bottom-line profits reported on a firm’s income statement. The ...

That is not return on equity, but an earnings to price ratio, i.e., the earnings yield, and in these examples, with no growth and perpetual (constant) net income, that earnings yield will be equal ...

To illustrate, he uses the example of buying a pizza parlor for $100,000. If you only make $5,000 after expenses each year on your parlor, your return on equity is 5%. If, however, you make $ ...

A good example of this comes from some simple math around Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), starting with just ...