Фінансові терміни

Return on equity

This is the percentage of the company's profitability (usually per year) to its capital. Shows how well invested in it contributes to the growth of profits. It is also used to assess the performance of a company over a period of time. A good indicator is considered a value from 15 to 20%. A higher percentage can indicate both success and an excessive level of risk, a lower one - about a conservative approach or internal problems.