return on equity
noun[U]
ukus(abbreviationROE)FINANCE,ACCOUNTING
a company'sprofitfor aparticularperiodcomparedwith theamountofsharecapital(=moneyinvestedbyshareholders)in it. Thisshowshoweffectivelythecompanyis usingitssharecapitalto make aprofit:
One way toincreasereturnonequityis tocuttheamountofcapitalsupportingthebusiness.