Return on equity: Difference between revisions
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imported>Doug Williamson (Add formula.) |
imported>Doug Williamson (Add link.) |
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* [[Equity]] | * [[Equity]] | ||
* [[Profit after tax]] | * [[Profit after tax]] | ||
* [[Return on assets]] | |||
* [[Return on capital employed]] | * [[Return on capital employed]] | ||
* [[Return on investment]] | * [[Return on investment]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Revision as of 20:48, 25 June 2016
(ROE).
A measure of how much profit is enjoyed (or expected to be enjoyed) by equity investors, compared to the book value of the equity investment made.
Profit is measured as profit after tax.
ROE is calculated as:
Profit after tax / (book value of equity)
