Return on equity measures how much a company earns within a specific period in relation to the amount that's invested in its common stock. It is calculated by dividing the company's net income before common stock dividends are paid by the company's net worth, which is the stockholders' equity. In general, it's considered a sign of good management when a company's performance over time is at least as good as the average return on equity for other companies in the same industry.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). return on equity. Retrieved September 21, 2026, from http://smartdefine.org/return_on_equity/definitions/1162475 |
| Chicago | Barry Goldsmith. 2010. "return on equity" http://smartdefine.org/return_on_equity/definitions/1162475 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, return on equity, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/return_on_equity/definitions/1162475>. |
| MLA | Barry Goldsmith. "return on equity" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/return_on_equity/definitions/1162475> |