return on equity

American  

noun

Accounting.

1. the amount of profit computed by dividing net income before taxes less preferred dividends by the value of stockholders' equity, usually expressed as a percentage. ROE

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Example Sentences

Corporate reform momentum is accelerating, lifting return on equity and shareholder returns, with more runway ahead.

From Barron's • Jun. 5, 2026

Small-cap stocks generated return on equity of less than 1% over the trailing 12 months through the first quarter of 2026, compared with about 20% for large-cap stocks, according to Sagal.

From MarketWatch • May 28, 2026

The bank is targeting a net return on equity around 17% by 2028, up from the previous forecast of 15%.

From The Wall Street Journal • May 8, 2026

Even amid worries about rising capital expenditure and lower prospective returns, the return on equity for these stocks remains high, with earnings revisions more positive than for any other sector.

From MarketWatch • Apr. 7, 2026

Royal Bank’s return on equity, a measure of profitability closely watched by analysts, expanded by 0.8 percentage point on last year to 17.6%.

From The Wall Street Journal • Feb. 26, 2026