You can find significant alpha in the mechanics that drive GAAP accounting. Return on equity (ROE) is the glue that holds GAAP together, so that’s where we’ll start. So long as revenue, expenses, ...

Return on equity, or ROE, can be a useful measure of evaluating a company's profitability relative to other businesses. Basically, it tells us how efficiently a company is using its shareholders' ...

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 ...

The Chartered Financial Analyst (CFA) exams are considered among the most difficult tests on Wall Street. There are three levels of exams and all three will be administered on June 1. One of the more ...

Let's analyze an important financial ratio for investors, which is one of the best measure of performance for a company's management: the return on equity (ROE). The ROE is calculated as net income ...

How to evaluate a company's ROE. I previously wrote an article on measuring a company's return on invested capital (ROIC). Looking at a company's return on equity, or ROE, also might be useful. What's ...