Definition of “return on equity” - English Dictionary

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“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)