Return On Equity (ROE) Definition | Business Dictionaries from AllBusiness.com

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Business Definition for: Return On Equity (ROE)

Return On Equity (ROE)

net income divided by total equity; it is a profitability ratio measuring how well equity capital is used.

Return On Equity (ROE)

net income expressed as a percentage of average total equity. This percentage measures profitability by expressing how efficiently invested capital or equity is being utilized.

profitability

Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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