Science Fair Project Encyclopedia
Return On Equity
(Redirected from Return on equity)
Return on common Equity (ROE, Return on average common equity) - Earnings before extraordinary items, less preferred-share dividends, divided by average common shareholders' equity. Shows the rate of return on the investment for the company's common shareholders, the only providers of capital who do not have a fixed return.
Return on total equity (ROE) - A measure of how well a company used reinvested earnings to generate additional earnings, equal to a fiscal year's after-tax income (after preferred stock dividends but before common stock dividends) divided by total equity, expressed as a percentage.
Source
03-10-2013 05:06:04
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details