ROE (Return on Equity)
ROE stands for "Return on Equity." It is a financial ratio used to measure the profitability of a company in relation to the equity invested in the business by its shareholders. ROE is calculated by dividing the net income of a company by its shareholder equity. A high ROE indicates that a company is effectively using its equity to generate profits, while a low ROE may suggest that the company is not performing well or that there are better investment opportunities available.
