What is Return on Equity (ROE)?
Quick definition
Return on equity measures annual gain or loss relative to the equity you have invested.
InvestingGeneral
Overview
In property scenarios, ROE compares annual result (pre-tax or after-tax) to your invested equity such as deposit and upfront capital.
ROE is useful for comparing efficiency of invested capital, but it should be interpreted with risk, liquidity, and assumptions in mind.
