Tag: Return on Equity

  • How should retail investors use ROE analysis in stock investing ? 

    How should retail investors use ROE analysis in stock investing ? 

    Investors, when analyzing stocks, should look at ROE analysis ( Return on Equity) as a key metric. ROE measures how well a company’s managers are growing profit as a percentage of the company’s overall net assets. It is calculated by dividing net income by shareholders’ equity. ROE = (Net Income / Shareholders’ Equity) x 100…