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A measure of a company’s profitability involving finding the ratio of net income to the company’s net worth.
REO is the amount of net income conveyed as a percentage of shareholders equity.
ROE is expressed as a percentage and may be calculated as:
Return on Equity = Net Income/Shareholder’s Equity
See also:
Cost–benefit analysis
Cost consequences analysis (CCA)
Shareholder value
Related terms
Sales promotion, Ad concept testing, Pharmaceutical Pricing Regulation Scheme (PPRS), Post-testing, Hypothesis, Data fusion, Randomised trial, Marketing, Executive summary, N, Safety assessment of marketed medicines studies (SAMM), Customer relationship management (CRM), Quality assurance programme, Opportunities to hear (OTH), Brainstorm,
