Return on Equity (ROE) | Definition, Formula, and Example
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financestrategists.com
Return on Equity (ROE) | Definition, Formula, and Example
Return On Equity, or ROE, is a measurement of financial performance arrived at by dividing net income by shareholder equity. Because shareholder equity is equal to a business's assets minus its debts, ROE can also be considered the return on net assets. ROE, therefore, is sometimes used to estimate how efficiently a company’s management is ...
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