Investors seeking to analyze how executive management is performing and how much a company is earning relative to book value turn to a profitability ratio known as return on equity. From an ...

See how we rate investing products to write unbiased product reviews. Return on equity (ROE) is a financial performance metric that shows how profitable a company is. ROE is calculated by dividing ...

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 ...

Return on equity (ROE) is one such metric ... Subscribing to the traditional definition of ROE can mislead investors. Firms that chronically report negative net income, but have healthier free ...

The cost of equity is the required rate of return from an investment or project to be worth the risk. What Is the Cost of Equity? The cost of equity is the return that a company requires to decide ...

An equity-indexed annuity is a contract with an insurance company. You pay premiums during the accumulation period, and ...

Investopedia / Xiaojie Liu Invested capital is the total amount of money raised by a company by issuing securities to equity shareholders and debt to bondholders. Return on invested capital (ROIC ...

Investors often compare it to return on equity, another ratio related to analyzing a company’s profitability. And like return on equity, return on assets is more useful in comparing companies ...