Return on Equity (ROE) is a financial ratio that measures the return generated on stockholders’/shareholders’ equity. It is more than a measure of profit; it’s a measure of efficiency. ROE measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested. It is useful for comparing the profitability of a company to that of other firms in the same industry. ROE can be decomposed to understand the fundamental drivers of value creation in a company.
More Post
Latest Post
-
Cathodic Protection – a technique for controlling corrosion
-
Electromagnetism – a discipline of physics
-
Astronomers Measure the Heaviest Black Hole Pair ever Discovered
-
Even Passive Smokers are Extensively Colonized by Microbes
-
Webb discovers Proof that a Neutron Star powers the Young Supernova Remnant
-
Flyback Transformer (FBT)