Return on equity, commonly referred to as "ROE," tells you how well your company is turning the owners' investment into profit. When the company is a corporation, this metric goes by the name "return ...

Return on equity, or ROE, is a common metric used to measure the effectiveness of management. A high ROE, compared to industry peers, is a sign of operational efficiency and vice versa. ROE can also ...

Bill Mann explains the hows and whys of one of the most important tools in financial analysis. Ever wonder why some companies succeed while similar companies fail to generate the same returns for ...

Warren Buffett has long said that the best businesses to own are those that consistently generate above-average returns on equity, or ROE. For more on his thoughts, see his letters to shareholders ...

At its heart, DuPont Analysis is a technique used to decompose Return on Equity (ROE) into a set of distinct financial ratios. Think of a car engine: you know it makes the car move, but to understand ...

Discover how the equity multiplier measures asset financing through stock versus debt, and what it means for company leverage and investment risk.

The report suggests there is little assurance that even the current 15 percent ROE will hold. Companies could return to using leverage to lift asset turns, but such a move depends on stronger ...

Break it down with the DuPont formula. As investors, we need to understand how our companies truly make their money. A neat trick developed for just that purpose -- the DuPont formula -- can help us ...