Return on equity, or ROE, is a measure of how efficiently a company is using shareholders' money. Since efficient companies tend to be more profitable companies, and more profitable companies tend to ...
In simple terms, a company's net income is its total revenue minus all business expenses, taxes and debt payments. A business with costs greater than the amount of revenue it brings in over the course ...
As a financial ratio, the return on equity (or ROE) shows how economically a company is being run, since the return on equity is a measure of the revenues the company is able to generate from capital ...
The return on equity and its more expansive variant, the return on invested capital, measure what a company is making on the capital it has invested in business, and is a measure of business quality.
Investors can pick from a seemingly endless array of metrics to help find the best stocks. And there are no right or wrong investment strategies. Today, however, we are going to focus on one of the ...
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business.
Forbes contributors publish independent expert analyses and insights. #1 stock picker for 51 straight months on SumZero. AI is my edge. Last week, I highlighted how P/E ratios are meaningless, and ...
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to ...
PG&E in particular, has attracted the ire of California customers for its frequent rate hikes within the last year.
California utilities regulators are bringing down “return on equity” payments to power company shareholders. It’s the lowest ...