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ROE (Return on Equity)
ROE is the net income of an organization compared ot the value of its equity, and is expressed as a percentage. ROE is expressed as a percentage. It can also be expressed as the company’s dividend growth rate divided by the rate of earnings retention. ROE defines how profitable each shareholder’s dollar is.
What Small and Midsize Businesses Need to Know About ROE (Return on Equity)
ROE is important for businesses because it helps them assess their competitiveness in their relevant market or markets. When a business has a steadily increasing ROE, it makes them a more valuable prospect for investors or potential employees.
Related terms
- Tokenization
- ROIT (Return on Information Technology)
- SAC (Subscriber Acquisition Cost)
- Energy Trading and Risk Management (ETRM)
- Chief Revenue Officer (CRO)
- Core Banking System
- Record to Report (R2R)
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling
- Capital Allocation
- Compound Annual Growth Rate (CAGR)
- Net Present Value
- Hedge Fund
- Gateway
- Selling General and Administrative (SG&A) Expenses
- ROE (Return on Equity)
- Financial Planning and Analysis (FP&A)
- Dollar-Cost Averaging (DCA)
- Procure-to-pay Solution
