ROE

Du Pont Formula
A comprehensive financial analysis method used to break down return on investment (ROI) into component parts: margin and turnover. This formula helps identify key drivers of a company's profitability.
Rate of Return on Equity (ROE)
Rate of Return on Equity (ROE) measures the profitability of an investment, focusing on net income generated by shareholders' equity. It provides insights into how efficiently a company uses its equity base to generate profits.
Return on Equity (ROE)
Return on Equity (ROE) is a financial metric that assesses a company's ability to generate profit from its shareholders' equity. It is calculated by dividing net income by shareholders' equity.
Return on Equity (ROE)
Return on Equity (ROE) is a measure of financial performance, determined by dividing net income by shareholders' equity. ROE is an essential metric for evaluating a company's profitability and efficiency in generating profits from its equity.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.