Return on investment (ROI) is a financial term used to evaluate the profitability of investment. It is the ratio of net profit or loss to the cost of investment. Learn what Return on Investment (ROI) is and how to calculate it. √ Discover why ROI is crucial for measuring investment profitability and efficiency. ROE full form stands for Return on equity. ROE refers to a measurement of a corporation’s or an enterprise’s performance in a given period. To determine ROE, one needs to assess the net income of the brand and divide it by the shareholders’ equity. In simple words, it is the company's ability to turn shareholders’ equity, essentially, the owners’ stake in the business, into net income. A higher ROE indicates that the company is better at converting equity investments into profits, suggesting effective management and strong financial performance.
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