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Meaning of “return on equity” in the English Dictionary

"return on equity" in Business English

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return on equitynoun [U]

uk   us   abbreviation ROE
FINANCE, ACCOUNTING a company's profit for a particular period compared with the amount of share capital (= money invested by shareholders) in it. This shows how effectively the company is using its share capital to make a profit: One way to increase return on equity is to cut the amount of capital supporting the business.
(Definition of return on equity from the Cambridge Business English Dictionary © Cambridge University Press)
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