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 ...

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 $ ...

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 ...

For example, its cost of equity may be 8% ... This can also help in deciding which types of projects to pursue. The cost of equity is the return that a company must realize in exchange for ...

For example, a low ROA might indicate that if ... use to analyze a company's profitability level. The other is return on equity (ROE). Both provide a view of how effective a company is at ...

Example of Shareholder Equity As part of its ... Equity vs. Return on Equity Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholder equity.

Example: If dividends per share ... The equity dividend rate answers the question: What is the return on the initial capital investment? The equity dividend rate is one of the best ways to measure ...