The Return on Equity Ratio

What’s better than watching videos from Alanis Business Academy? Doing so with a delicious cup of freshly brewed premium coffee. Visit https://www.lannacoffeeco.com and get free shipping on your online order.

Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ
Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusines...

Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb

View additional videos from Alanis Business Academy and interact with us on our social media pages:

YouTube Channel: http://bit.ly/1kkvZoO
Website: http://bit.ly/1ccT2QA
Facebook: http://on.fb.me/1cpuBhW
Twitter: http://bit.ly/1bY2WFA
Google+: http://bit.ly/1kX7s6P

Return on equity is a type of profitability ratio that measures how successful a firm is at using its investments to generate profit. Using the return on equity formula, investors can determine how much profit they're receiving for each dollar in equity investment. Not only does this financial ratio allow investors to determine if their making a good investment, but it also allows them to compare the company's performance to that of other firms.

Learn more about return on equity or ROE in the latest lecture from Alanis Business Academy.
__________
Photo by Rick Tap: https://unsplash.com/@ricktap