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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. : ROE


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Example Sentences

Goldman’s return on equity, a measure how well an investment bank does with its underlying assets, was 14.8% on an annualized basis.

The five members of the Georgia Public Service Commission ordered that the company can’t earn an additional return on equity through a construction surcharge levied on Georgia Power’s 2.7 million customers after March 30.

"He bought a 10% return on equity, similar to UniCredit's, at roughly half the value of the book, that is for a cheaper price than his own bank. That's brilliant." he said.

From Reuters

The Unirule Institute, an independent think tank in Beijing, said state industry was so inefficient that its return on equity — a broad measure of profitability — was negative 6%.

The bank’s return on equity, a measurement on how well an investment bank is performing with the assets they hold, was 7.1% in the quarter.

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return on assetsreturn on investment