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return on equity

noun, Accounting.
1.
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.
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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Examples from the web for return on equity
  • 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.
  • Shareholder value is maximized, almost surely, when long-run risk-adjusted return on equity is maximized.
  • The rate of return on equity has also increased sixfold.

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