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English definition of “return on equity”

return on equity

noun [U] ( 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 noun from the Cambridge Business English Dictionary © Cambridge University Press)

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