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

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

Boland says the improvement in the Canadian bank’s return on equity was welcome, and supports the goal of hitting 15% exiting 2027.

From The Wall Street Journal • Feb. 25, 2026

This will likely help improve the bank’s shareholder return and return on equity.

From The Wall Street Journal • Feb. 23, 2026

In addition, on a price to book vs. return on equity ratio, the South Korean market is more attractively valued than other markets in the region.

From MarketWatch • Feb. 16, 2026

“Bank of New York Mellon’s return on equity has always been outstanding, and certainly underappreciated,” he said.

From MarketWatch • Jan. 26, 2026