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    Sunny109's Avatar
    Sunny109 Posts: 4, Reputation: 1
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    #1

    Mar 21, 2010, 09:02 AM
    Can anybody help me with Finance Quesstion
    What is ROE means
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Mar 21, 2010, 10:30 PM

    It's Return on Equity. Net Income divided by Stockholder's Equity. It's basically what the net profits of the company as a percent of the total equity. It's like you investing in something, getting something back out of it, and what the return is you got out of it as a percent.

    Everything you ever wanted to know about ratios and probably stuff you didn't want to know:
    Investopedia.com: Financial Ratio Tutorial
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