The profitability returned in direct relation to shareholders' investments is called the return on equity.
| Return On Equity - ROE | Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. | | | Related to "Return On Equity - ROE" | | | | Operational Efficiency | Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operational costs. Read More | | | Asset Turnover Ratio | Asset turnover ratio measures the value of a company's sales or revenues generated relative to the value of its assets. Read More | | | | Shareholders' Equity | A firm's total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Read More | | | Retention Ratio | The retention ratio is the proportion of earnings kept back in the business as retained earnings. Read More | | | | | | | | | Follow Us: | | | | | | | | |