Iron Mac
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You may have seen the term "ROE" in analyst reports or financial statements many times. Do you know what it is and how the ratio can generate useful information?
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity.
What does ROE tell you?
Most of the times, financial ratios need to be compared with peers' data to generate useful information. ROE is no exception. For example, the average ROE in the utility sector could be 10% or less, while a technology or retail firm with smaller balance sheet accounts may have ROE levels of 18% or more.
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Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity.
What does ROE tell you?
Most of the times, financial ratios need to be compared with peers' data to generate useful information. ROE is no exception. For example, the average ROE in the utility sector could be 10% or less, while a technology or retail firm with smaller balance sheet accounts may have ROE levels of 18% or more.
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Iron Mac
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Hi mooer,
Huat lah! Welcome to moomoo community!
Here in moomoo, traders from all over the world share personal investing experiences and concepts with new and old friends.
You can see in-depth investment reviews, daily profit & loss, trading disciplines, the processes for building a personal trading system and more!
Many interesting things are happening now, let me show you around!
Wanna see how everyone else is doing?
People are sharing their Daily Profit & Loss in moomoo community:...
Huat lah! Welcome to moomoo community!
Here in moomoo, traders from all over the world share personal investing experiences and concepts with new and old friends.
You can see in-depth investment reviews, daily profit & loss, trading disciplines, the processes for building a personal trading system and more!
Many interesting things are happening now, let me show you around!
Wanna see how everyone else is doing?
People are sharing their Daily Profit & Loss in moomoo community:...
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