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 ...

Some companies choose to distribute some of the profits on their balance sheet to common stockholders in the form of dividends ... stock on a balance sheet Equity is the value of what the ...

the leftover profits are retained by shareholders and can be paid out in the form of dividends or buybacks," Fiorica says. "Therefore, a lower debt-to-equity ratio implies that equity holders have ...