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Return on equity
Related to Equities: Return on equity (ROE) is net income divided by average common equity. ROE can vary widely among companies and is a measure of profitability. Higher numbers typically indicate higher profitability. However, there are several exceptions.
Related to Mutual Funds: An indicator of profitability. Return on equity for an individual company is calculated by dividing net income for the most recent fiscal year by common stockholders' equity (Assets minus liabilities). A fund's return on equity is calculated by averaging the return on equity of all companies whose securities are held in the fund's portfolio.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: Funds
- Company: Merrill Lynch
- Product:
- Acronym-Abbreviation:
Other Languages:
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