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.

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