Return on equity (ROE) measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE shows how well a company uses investment funds to generate earnings growth. ROEs between 15% and 20% are generally considered good.
Read more about Return On Equity: The Formula, The DuPont Formula
Famous quotes containing the words return and/or equity:
“To save the theatre, the theatre must be destroyed, the actors and actresses must all die of the plague. They poison the air, they make art impossible. It is not drama that they play, but pieces for the theatre. We should return to the Greeks, play in the open air; the drama dies of stalls and boxes and evening dress, and people who come to digest their dinner.”
—Eleonora Duse (1859–1924)
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