Return on Equity (ROE) measures a company's profitability and financial efficiency. ROE is calculated by dividing annual net earnings by average shareholder equity. High or improving ROE indicates ...

Investors seeking to analyze how executive management is performing and how much a company is earning relative to book value turn to a profitability ratio known as return on equity. From an ...

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

One fundamental metric that investors might evaluate is return on equity (ROE), especially if you're a value investor, meaning you choose companies whose stock price seems to be undervalued in ...

Return on equity, or ROE, is a measure of how efficiently a company is using shareholders' money. Since efficient companies tend to be more profitable companies, and more profitable companies tend ...

As I noted at the start of this post, it was motivated by trying to clear up a fundamental misunderstanding of what return on equity measures. In fact, the working definition that some commenters ...

Return on Investment (ROI) Definition: A profitability measure ... Don't confuse ROI with the return on the owner's equity. This is an entirely different item as well. Only in sole proprietorships ...

Investopedia / Xiaojie Liu Invested capital is the total amount of money raised by a company by issuing securities to equity shareholders and debt to bondholders. Return on invested capital (ROIC ...