return on equity

noun Accounting.
the amount of profit computed by dividing net income before taxes less preferred dividends by the value of stockholders' equity, usually expressed as a percentage. Abbreviation: ROE
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Based on the Random House Dictionary, © Random House, Inc. 2014.
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Example sentences
They thus allowed a system to develop where bank executives used return on
  equity as their target measure.
Driving its success is a corporate obsession with return on equity.
It also was more efficient in terms of a higher rate of return on equity.
It found that these firms enjoyed a higher return on equity, fatter operating
  profits and a more buoyant share price.
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