Return on equity ( ROE ) is a measure of the profitability of a business in relation to its equity. Learn how to calculate ROE , its usage, and its components with the DuPont formula. Return on Equity is a financial ratio that measures company's profitability by dividing net income by shareholders' equity. Return on Equity, abbreviated as ROE , is a critical financial indicator that measures a company’s profitability in relation to its shareholders’ equity. It offers a window into a company’s... Return on Equity or ROE is one of the vital parameters for collecting information about a company.

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