Investor Glossary-roeInvestor Glossary-roeInvestor Glossary-roeInvestor Glossary-roeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

ROE

The HTML to link to this page
 

ROE is an abbreviation for return on equity, which is a measure of a company's profitability. Essentially, ROE reveals the profit a company generates using the money that shareholders have invested in the company. ROE lets investors know how well their money is being utilized. ROE can be computed by taking a company's net income for a given period and dividing it by shareholder's equity. In addition, ROE may also be calculated by dividing net income by average shareholders' equity (shareholders' equity at the beginning of a period plus shareholders' equity at the end of a period divided by two). ROE is a useful tool for comparing the profitability of a company with others in the same industry. Growth investors tend to lean towards a company that has a high and growing ROE. A company that shows repeatedly poor ROE figures is likely to be struggling.



Rate this ROE definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: irrevocable trust, minority interest, Zero Cost Collar, 144a, open position, EBITDA, 1035 exchange, annual return, FICO score, phantom income, in escrow, diluted share, deferred revenue, real GDP, deferred tax, current ratio, FTSE, 1031 exchange, dividends payable, margin rate, stock market close, limit order, VIX, retained earnings, per diem, debt service coverage, class C shares, stock split, average price per share, ex-dividend, command economy, ex-dividend date, reverse mortgage, liquidity ratio, option premium, risk management, quality assurance, 401a, required rate of return, cancelled check, implied volatility, covered put, LIBOR, Key Rate Duration, labor relations, wholly-owned subsidiary, APR, balance sheet, inflation


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use