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The return on equity (ROE) is a measure of the profitability of a business in relation to its equity; [1] where: . ROE = Net Income / Average Shareholders' Equity [1] Thus, ROE is equal to a fiscal year's net income (after preferred stock dividends, before common stock dividends), divided by total equity (excluding preferred shares), expressed as a percentage.
DuPont analysis (also known as the DuPont identity, DuPont equation, DuPont framework, DuPont model, DuPont method or DuPont system) is a tool used in financial analysis, where return on equity (ROE) is separated into its component parts.
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 ...
Return on equity (ROE) measures how well a company generates profits for its owners. It is defined as the business’ net income relative to the value of its shareholders' equity. It reveals the ...
In the denominator we have net assets or capital employed instead of total assets (which is the case of Return on Assets). Capital Employed has many definitions.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it Read More...
Return on equity (ROE) Return on invested capital (RoIC) Return on Investment + cost of Living(ROIL) (Frequently used for small businesses.) Return on marketing investment (ROMI) is "the contribution attributable to marketing (net of marketing spending), divided by the marketing 'invested' or risked; Return on modeling effort (ROME)
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...