How it is worked out
Net income divided by equity.
How to read it
- More borrowing, or buybacks that shrink equity, raise it as well as a better business does. Read it with the debt and the ROIC.
Example
Net income 120, equity 1,000: a 12% ROE.
ROE (return on equity)
Profitability
What the company earns on its shareholders' money.
Related terms
Related pages
The other pages on US stocks, free to read. On the company pages, the last three fiscal years are open to everyone, five with a free account, and every year with Ploutos Investor.
US stocksThe market today, the sectors, the largest companies and the week's results.The market's sectorsThe 11 sectors side by side: returns, share of the market, median P/E and dividend.Compare stocksTwo companies side by side: price over up to ten years, with and without dividends, and every figure.US dividend stocksEach dividend's yield next to whether the company's cash covers it and whether it was ever cut.
Explanations of terms for learning, with examples from SEC filings.