MarketLearn
Chapter 21Intermediate~19 min total

Return on Equity (ROE)

How hard the company works with owners' money

ROE measures profit as a share of shareholders' equity. It is powerful, widely used, and easy to misread without context.

Lessons

  1. 1What ROE measuresIntermediateNet profit as a percentage of shareholders' equity.~9 min
  2. 2Why ROE needs contextIntermediateDebt inflates ROE — read it alongside other measures.~10 min
Course positionChapter 21 of 35